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The developing countries have only hurt their own people in Cancun

By Alan Oxley - posted Friday, 19 September 2003


And they have paid the price. Brazil will not get access to markets in Europe and the US without the help of the WTO. And it has just marginalised itself. The African members of the WTO have derailed the only global system capable of providing opportunities for growth.

Australia has little choice but to make an effort to repair the WTO. It is too important to neglect. There is a new divide in the organisation: those who would prefer to play political games and those who want to make it work. Australia may find itself working in collaboration with those it has traditionally opposed, to get the institution back on its feet.

Of course, the WTO will not collapse. But it is an option to give up negotiating cuts in trade barriers. If the EU and US elect to go down that path, industrialised economies will be OK. Their tariffs are already low and bound under WTO law to stay low.

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Developing economies with higher trade barriers would be the losers. The system would not be able to give them support to cut trade barriers and promote growth. It would be their choice. Pity about their citizens.

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This article was first published in The Australian on 16 September 2003.



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About the Author

Alan Oxley is the former ambassador to the General Agreement on Trades and Tariffs and Chairman of the Australian APEC Studies Centre.

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