GAO Report Finds that Considerable Work Needed to Accomplish WTO Goals

Progress was made in 2004 on advancing world trade talks, but considerable work remains before accomplishing an agreement that can be agreed upon, according to a report by the Congressional investigative arm.

A Government Accountability Office report, Global Trade Talks Back on Track, but Considerable Work Needed to Fulfill Ambitious Objectives, explains that talks remain behind schedule with several contentious issues standing in the way of a final agreement.

During 2004, Doha Round negotiations got back on track as trade ministers signed a framework agreement known as the "July package." By committing to eliminate agricultural export subsidies, the agreement's main achievement was to recognize the importance of agriculture in the round and thus reopen talks on other issues.

Time is ticking as WTO members are working toward deadlines for more detailed agreements at the December 2005 Hong Kong ministerial conference. The GAO report recognizes negotiations are picking up momentum heading into the December meeting.

"Progress has been uneven on the six negotiating issues identified as central to the Hong Kong meeting--agriculture, trade facilitation (customs reforms), industrial market access, services, WTO rules, and development issues. The United States has particular reform interests in the first four of these issues," the GAO finds. "Progress has occurred on two of them: in agriculture, based on agreements in the July framework, and trade facilitation, for which talks have finally been started. However, little progress has been made on industrial market access and services, two other issues of interest to the United States."

The most challenging task ahead of the December meeting is achieving consensus among the WTO's 148 members. As seen in the past, developing nations led by Brazil and India have become more powerful in the negotiations. GAO also explains that diverse economic incentives and competing visions add complexity to the negotiations. Cooperation by the United States and the European Union has helped in progressing talks.

Continued cooperation from developing nations is essential to a successful conclusion before U.S. Trade Promotion Authority expires in mid- 2007, an implicit deadline for the talks.