Sir,
I can understand Paavo Väyrynen's worries about the uncertain fate of the Doha Development Round (DDR), but we should also remember that a huge effort is being made to find a way forward. The WTO’s chief, Pascal Lamy, believes the political commitment to succeed remains strong.
The current stalemate, of course, poses grave risks, so the EU must continue to play an active role in promoting multi-lateral trade liberalisation. The Doha Round is the most ambitious project to date and its conclusion would be a significant boost to the world economy by underpinning export-led recoveries in recession-hit countries. Some analysts say a successful Doha Round could increase world trade by more than €300bn a year and its income by more than €135bn, far more than any bi-lateral trade agreements could ever hope to achieve.
But we should also not forget that the EU renewed its trade strategy in 2010, laying down fresh guidelines for both multi-lateral and bi-lateral relations. Spain encouraged this debate during its Council presidency, with external trade emerging as a crucial element of the EU 2020 strategy because of its vital role in stimulating growth and creating jobs. It was decided that while concluding Doha remains a priority, Europe should also push forward on a parallel bi-lateral trade agenda, including comprehensive free trade agreements (FTA) with EU neighbours and greater weight for trade in strategic partnerships. There was also a general call for the EU to complete current FTA negotiations.
Europe considers these agreements to be stepping stones on the path to multi-lateralism, not headstones for the Doha Round, with mechanisms being discussed within the DDR that would make FTAs even more “WTO friendly”. For this reason too, completing the Doha Round seems to me to be vital for the global trading system, and deserving our highest level of attention.