Los Angeles Times | November 15, 2001
Trade: Limits on ability to do deals, plus concessions made to secure new round of negotiations, could hinder any benefits.
BYLINE: WARREN VIETH, TIMES STAFF WRITER
DOHA, Qatar - U.S. Trade Representative Robert B. Zoellick scored a huge victory for free trade by engineering the World Trade Organization's agreement Wednesday to launch a new round of global trade talks.
Now comes another challenge: dealing with domestic politics. The likelihood that Congress may curb Zoellick's ability to negotiate trade deals could limit the ultimate benefits of the new round. And concessions made to secure the agreement could spark opposition from U.S. drug and steelmakers. The WTO's 142 members, soon to be 144 with the admission of China and Taiwan, reached consensus on launching a new round after six days of difficult deliberations inside a heavily guarded Qatari convention center.
The Doha ministerial, so named because member governments send their trade ministers instead of underlings, was the first held since the collapse of similar discussions two years ago in Seattle.
WTO members approved a set of documents specifying the ground rules for three years of negotiations that, if successful, could produce a sweeping agreement to further reduce barriers to international trade.
Before they could come to terms on the guidelines, the big industrialized countries that dominate the WTO had to make several major concessions: They promised to move faster to reduce agricultural subsidies, a painful decision for Europe in particular.
They agreed to curb the growing use of anti-dumping rules to block imports of steel and other products, a touchy issue for the United States.
They endorsed the right of developing countries to override drug patents to buy low-cost drugs to treat AIDS and other health scourges.
Even after most WTO members had made their peace with the finely parsed compromises, brinkmanship by France and India almost killed the deal. Ultimately, they were appeased, although India reserved the right to opt out of some aspects of the new round.
"Our long days and nights are over," Zoellick told his fellow trade ministers Wednesday. "By agreeing to launch new global trade negotiations, we are helping to deliver growth, development and prosperity throughout the world."
Zoellick is a believer in the bicycle theory of trade expansion: Either you keep moving forward, or you fall over.
Zoellick pedaled all the way to Doha and back without losing his balance. The pact he brought back could have big payoffs: for U.S. businesses, more exports of goods and services; for consumers, bountiful, affordable imports.
Millions and millions of bicycle riders, all moving forward. Until they hit the speed bump on Capitol Hill.
None of the bargains struck by Zoellick in Doha requires immediate congressional approval. But concessions he made on drug patents and anti-dumping policy will alienate pharmaceutical companies, steelmakers and their allies in Congress.
And in a twist of political fate, Zoellick's success in Qatar could doom his top priority on Capitol Hill: legislation authorizing him to negotiate trade deals that can't be rewritten by lawmakers.
Jeffrey Schott, a trade specialist at the Institute for International Economics in Washington, said Congress' refusal to give Zoellick the trade promotion authority wielded by most of his predecessors will limit his ability to get the most out of the new round.
"When you start engaging in real negotiations, countries are not going to put their best offers on the table unless they know that Zoellick's got trade promotion authority in his pocket," Schott said.
"Trade is a very contentious issue in Congress. It divides both parties," said Sophia Murphy with the Institute for Agriculture and Trade Policy in Minneapolis. "If you really [antagonize] Congress, you could make it harder to do things the administration wants to do."Los Angeles Times:
