The first World Trade Organisation negotiations for a global trade liberalization pact were held in Doha, Qatar's capital city, almost 10 years ago. The lack of meaningful results since then has prompted some commentators to declare them dead.

However optimists are now hoping that a compromise can be reached before December 17, 2011 in the new round of talks taking place in Geneva, Switzerland. Many see this as a last chance for member countries to come to a deal.

Dead or alive

WTO Director-General, Pascal Lamy said the question was not whether the Doha trade talks had died or not. "The question is whether WTO members remain committed to the objectives enshrined in the Doha agenda and in the WTO more broadly." Lamy was speaking in Berlin on the invitation of Deutsche Bank, where he spoke at length about WTO ambitions such as a free world market, removing trade barriers and integrating developing countries into the world economy.

But that is not going to be an easy feat; disputes are bound to arise over whether there will be improved market access for western goods and services to emerging markets like China and India. There could also be disagreements on the levels of cuts for agricultural subsidies, with wealthier blocs and countries, such as the European Union and the United States, shielding their farmers from competition.

Fears of a free market

If the 153 WTO member countries agree on all these points, they could change the tariffs and other trade barriers and turn the conference into a success. There are a lot of reservations, however, with people the world over worried about the job market. The removal of trade barriers would mean more international competition, so the right conditions and requirements need to be put in place to allay the fears of those opposed to a free market. "We need proper income distribution polices and more equality." Lamy said. For him it is the inequality between countries that breeds resentment to international trade.

Last chance

The economic situation in many countries represents a huge challenge to the WTO talks in Geneva. The US is struggling with a high unemployment rate, and with an election coming up in 2012, it is highly unlikely that anyone would come up with regulations that could cost them vital votes.

In spite of the debt crisis, Lamy has called for a global monetary system that inspires confidence and offers stability. Such a system would bring much-needed relief to world trade and to investors, and would ease the global cash flow. "Monetary policies cannot function in a vacuum, or in a national interest but only when there is a global interest," Lamy said. According to him, the only way to achieve this is through global co-operation.

Author: Andreas Becker/cm
Editor: Susan Houlton / rm