Associated Press | November 15, 2001 | By TONY SMITH; AP Business Writer
SAO PAULO, Brazil - Across the globe, from Brazil to India, developing nations felt they were shortchanged by the last round of world trade talks, complaining the rules were made by - and for - rich, industrialized countries.
But now, with a new round agreed by the World Trade Organization's 142 members, plus heavyweight newcomers China and Taiwan, poorer countries have a fresh chance to grab a share of global commerce.
Ever since world trade liberalization started after World War II with the 23-nation General Agreement on Tariffs and Trade of 1947 - that in 1995 became the WTO after eight years of negotiations known as the Uruguay Round - poorer countries have called for "a level playing field."
Without better access to customers in the developed world, they claimed they would forever be "emerging markets," never developing their full potential. "In GATT and the Uruguay Round, the deals were always done by the industrialized nations," said Marcos Jank of the Washington-based Inter American Development Bank.
"Things are changing very quickly right now," he said.
At the six-day WTO summit in Doha, Qatar, poorer nations scored victories across the board:
-The final document was peppered with language supporting developing nations, such as "the need for all our people to benefit from the increased opportunities and welfare gains that the multilateral trading system generates."
-They won a battle fought mainly by Brazil and South Africa against the world's pharmaceutical giants, allowing poor nations to override patents on life-saving drugs in emergency situations;
-They even managed to force Europe to agree to "phase out" farm export subsidies, albeit with conditions attached by France.
A lot is at stake.
British Prime Minister Tony Blair, on a recent tour of Latin America, said a successful new trade round could mean an extra $400 billion worth of trade - much of which would go to the poorest countries.
"In our sector at least, I believe a new round will help give developing nations more influence," said Henrique Rzezinski, vice president for international affairs at Embraer SA, Brazil's regional jetmaker that in a decade has grown to become the world's fourth plane builder.
For developing nations, "the WTO has become very important," he said. "Brazil, for one, has learned many lessons from its fights in the WTO."
Brazil's plucky defense of Embraer against Canada at the WTO is an example of how the forum can work for developing nations.
Supporting its Montreal-based jetmaker Bombardier, Canada complained Brazil was helping Embraer with illegal state subsidies. But Brazil appealed, made counter-allegations that Bombardier also received state aid, and won.
In Doha, Canada approached Brazil to negotiate an end to the conflict.
One sector where developing nations stand to gain most, however, is agriculture, a sector that is among the most protected by industrialized nations.
"This new round is a great victory," said Carlo Lovatelli, president of Brazil's Vegetable Oil Industry Association. "I hope it means we will be able to export more soy beans, meal and oil."
Brazil is one of the world's most competitive soy producers, with costs a seventh of those of producers in the Illinois corn belt. All that's missing is market access, said Lovatelli.
World soy consumption has grown from 130 million tons in 1996 to 173 million tons this year. Brazil's production has risen from 24 million tons to 42 million tons in the same period.
"In one or two years, we could boost production by between five and 10 million tons," he said.
With China's entry, Lovatelli smells a new market, but others contend that China's arrival will also tilt the WTO's political balance further in the poorer nations' favor.
According to Jank, China will join the ranks of Brazil, Russia, India and South Africa as heavyweight players increasingly willing to stand up to the industrialized powers.
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