WTO will wilt if Doha trade talks fail, warns Lamy

 “If we have to conclude Doha Round by end of 2011, we need a political consensus six months before that because there are a lot of technical works to be done,” Lamy said at Federation of Indian Chambers of Commerce & Industry.

He said world leaders at the recent G20 and Asia-Pacific Economic Cooperation summits have shown political resolve to conclude Doha Development Round.

“Leaders recognised 2011 window of opportunity to achieve this goal. They provided a clear signal that they expect the Doha Round to be deliverable next year,” Lamy said.

The Doha Round of trade negotiating of WTO, launched in 2001, aims to boost global trade by reducing trade barriers. The negotiations are stalled since 2008.  “If Doha Development Round was to fail, it would be the first in the history of GATT/WTO since 1948. It would weaken the only institution which governs the rules of world trade and has ability to adjudicate in the event of disputes between countries,” he  said. He urged world leaders for coordinated effort to conclude the negotiations, saying it will help in creating employment and boosting economic growth.  “The macro-economic imbalances do not originate in trade.

Addressing them through trade restricting measures will not work. Worse, it will trigger tit-for-tat protectionism,” Lamy said.  “The question ahead of us is clear: how to supplement what negotiators have already put on the table, with new give and take in order to build a final package that each member would take to their respective parliaments.”