Categorized | General Interest

Going Around Doha

    Here is another piece of evidence, from today’s Wall Street Journal, that the Doha global trade talks are in a state of permanent collapse:

BRUSSELS — Brazil’s exploration of a free-trade deal with the European Union highlights an important shift in the trade agenda of emerging economies: They are drifting away from a comprehensive global compact and toward bilateral agreements they hope will help them better compete with China’s export juggernaut.

Countries with fast-growing export sectors, such as Brazil, India and South Korea, are disengaging from the multilateral trade talks launched in Doha, Qatar, in 2001. Doha’s goal is to give poorer countries more access to wealthy markets in return for opening their service sectors to greater competition.

Nations such as Brazil — holding its first talks with the EU this week — are increasingly wary of a multilateral deal because it would mandate tariff cuts, exposing them more deeply to low-cost competition from China. Instead, they are seeking bilateral deals with rich countries that are tailored to the two parties’ needs, say trade officials and analysts.

    Interesting here is the juxtaposition between the language in the first and third paragraphs…follow me here after the jump.

    On the one hand, the article talks about Brazil’s pursuit of a so-called “free trade” deal–the pursuit of something that actually does not exist in the real world. On the other hand, the third paragraph refers to nations pursuing bi-lateral deals “tailored to the two parties’ needs.” AHA!!! Precisely. When you tailor a deal, you are not negotiating an agreement crowned with the non-sensical and ideological framework of “free trade.” Countries are seeking agreements that set particular rules–i.e., are “tailored”–to govern trade relationships between the participants.

    If we could start talking in this terms–what are the RULES of trade–maybe we can start having a sensible and more honest discussion about the terms of trade.

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