It seems as though the World Trade Organization’s Doha round has collapsed more times than the Chicago Cubs in the midst of a pennant race.
The latest breakdown for the WTO came in June, when representatives from the United States, Europe, Brazil, and India met in Germany. They got along about as well as fiery Cubs manager Lou Piniella at an umpires convention.
Although the Doha round has been in serious trouble for some time, there are now fresh worries over the possibility that it won’t ever be finished. “I think there is a sense that if we don’t get it done this year, Doha could well go into hibernation for several years to come,” said U.S. Trade Representative Susan Schwab last week. “There are some countries who really don’t want a Doha round outcome.”
She didn’t name them directly, but she had in mind Brazil and India for their unwillingness to compromise at the German meeting. In her view, they need to open their markets to more American-made products, especially manufactured goods. From their perspective, the United States and Europe must reduce their agricultural subsidies. Unfortunately, common ground has eluded both sides.
Moving forward, U.S. trade negotiators should bear in mind that while a small deal is better than no deal, no deal is better than a bad deal. Of course, that depends on what you would define as a ‘bad deal’. This is especially true for American farmers.
The fatal flaw of the Doha round perhaps may be found in its nickname--“the development round.” Since the end of the Second World War, trade liberalization has enriched the world immensely. Yet there’s also a sense that it hasn’t done as much as it could for the planet’s poorest people. And so it was decided that the Doha round should take them into special account.
The problem may be that some nations believed the “development round” was supposed to be a “charity round”--a set of talks in which wealthy countries would make concessions and expect little or nothing in return. Judging from the behavior of Brazil and India in Germany, this would certainly seem to be the case.
As every experienced dealmaker knows, a successful trade pact can’t be one-sided. It needs to help all sides, bilaterally or multilaterally. Participants must complete trade talks in the belief that they will be at least a little better off than they were at the start.
Trade certainly has benefited U.S. farmers. Agricultural exports grew from $53 billion in 2002 to nearly $69 billion last year. Among the states, California led the way with the most farm exports, followed by Iowa, Texas, Illinois, and Nebraska.
For each of the last three years, farm exports have broken records. They’re expected to bust them again this year, as the Department of Agriculture forecasts sales of more than $77 billion. These shipments to foreign markets account for more than 1 million American jobs.
Something like 95 percent of the world’s consumers live outside our borders. Reducing the protectionist barriers that prevent American-grown products from reaching foreign consumers ought to be one of our country’s highest economic priorities.
With respect to the Doha round, perhaps a small deal makes sense. A one-run inning, after all, is still a good inning, even if some runners are left on base.
What we can’t abide, however, is a bad deal--a trade agreement in which the United States makes meaningful concessions without receiving anything in return. And that’s precisely what some developing nations seem to expect.
Due to the nature of their demands, the burden of such a concession would fall upon the shoulders of American farmers. It shouldn’t. If farmers must give up something (perhaps some subsidies), then they must gain something in return--and what we would expect is an increased ability to sell our products to people in other nations.
So maybe the high hopes of the Doha round need to be downgraded. Even the lowly Cubs know that a desperate swing for the fences doesn’t always make sense. Sometimes a gentle bunt scores the winning run.
Dean Kleckner, an Iowa farmer and avid baseball fan, chairs Truth About Trade & Technology. www.truthabouttrade.org
Recieve the latest news and commentary from Truth About Trade & Technology in your inbox every Friday with our newsletter subscription service.
Subscribing is easy and free, simply fill out th form below and you subscription will begin immediately. We protect your privacy, your e-mail address will never be sold or redistributed and you can unsubscribe at any time.
News 
It seems as though the World Trade Organization’s Doha round has collapsed more times than the Chicago Cubs in the midst of a pennant race.
