*{The Future of the WTO and the Multilateral Trading System [http://www.weforum.org/site/knowledgenavigator.nsf/Content/The+Future+of+the+WTO+and+the+Multilateral+Trading+System?open&topic_id=300250000&theme_id=300]

            13.09.2000

            Asia Pacific Economic Summit 2000}

            In considering the future of the WTO and the multilateral trading system, the panellists initially reflected on the reasons for past problems. In leading off the discussion, Moderator Mari Pangestu, Executive Director, Centre for Strategic and International Studies, Indonesia, focused on the failure of the trade negotiations in Seattle. She said the Seattle ministerial meeting had failed because of:
            a lack of leadership;
            the greater number of coalitions opposing free trade;
            an attempt to tackle too many hard issues without trying to develop a consensus;
            insufficient preparation for a new, and more inclusive, negotiating environment;
            the proliferation of trading systems.

            Mark Vaile, Minister for Trade of Australia, expanded on some of the issues raised by Pangestu. He said it was too ambitious to bring 135 trade ministers together and expect them to come up with a comprehensive agreement in three days. Instead, he said more effort should have been made to develop a consensus on key issues before the main meeting, particularly with the middle economies who are not prepared to be dictated to by the major powers.

            Chau Tak Hay, Secretary for Commerce and Industry of the Government of Hong Kong SAR, agreed with Vaile's assessment, particularly the need to have several rounds of smaller meetings to build confidence, cooperation and consensus among WTO members. He also believed that the next major round of trade talks should be delayed until 2001 to allow time for this consensus-building process to take place.

            Luhut Pandjaitan, Minister of Industry and Trade of Indonesia, also had concerns about the next round of trade talks as Indonesia is still observing the effects of the previous round and needs time for consolidation before entering into new agreements. He said any future rounds should focus more on developing countries and less on the USA and Europe.

            Hisamitsu Arai, Vice-Minister for International Affairs, Ministry of International Trade and Industry, Japan, said it is vital that the WTO fosters better communication with civil society so that the concerns being expressed by different groups could be heard and answered.

            In response to these criticisms, Andrew Stoler, Deputy Director-General, World Trade Organization, Geneva, said that while he agreed with the previous panellists, the WTO has learned from the Seattle experience and has now developed processes that are much more inclusive. In fact, negotiating sessions on services and agriculture are already under way with other topics such as industrial tariffs, and non-tariff barriers and e-commerce expected to be placed on the negotiating agenda in the near future.

            Despite these clearly acknowledged problems with the WTO, the panellists were committed to the notion of trade liberalization. Arai stated that expanding trade is essential for the development of the national economy and the living standards of the people. "Every time governments were forced to block trade liberalization, there were not only trade wars but also military wars."

            Vaile said that any attempt to restrict trade is futile because, with the advent of the Internet, the world is now in an era of borderless trade. Arai agreed, saying that the focus is shifting from the liberalization of trade barriers to the reform of domestic measures.

            Pandjaitan provided a cautionary note when he said that not all countries have benefited equally from the multilateral trading system. Developing countries, in particular, have often been disadvantaged by globalization and trade liberalization. The real challenge for the WTO is to make sure the fruits of these arrangements are shared by all.                  

                  *{Contributors:       Arai Hisamitsu
                  Chau Tak Hay       Pandjaitan Luhut B.
                  Pangestu Mari
                  Silguy Yves-Thibault
                  Stoler Andrew L.
                  Vaile Mark}