[May look up <https://mc9.wto.org/system/files/documents/w10_1.pdf> for the
text of the clauses related to "PUBLIC STOCKHOLDING FOR FOOD SECURITY
PURPOSES", which constituted the very centre-piece of intense negotiations
at the meet.]

I/II.
http://in.reuters.com/article/2013/12/07/trade-wto-cuba-idINDEE9B602720131207

WTO overcomes last minute hitch to reach its first global trade deal

BY RANDY FABI

NUSA DUA, Indonesia Sat Dec 7, 2013 3:53pm IST


(Reuters) - The World Trade Organization reached its first ever trade
reform deal on Saturday to the roar of approval from nearly 160 ministers
who had gathered on the Indonesian island of Bali to decide on the
make-or-break agreement that could add $1 trillion to the global economy

The approval came after Cuba dropped a last-gasp threat to veto the package
of measures.

"For the first time in our history, the WTO has truly delivered," WTO chief
Roberto Azevedo told exhausted ministers after the talks which had dragged
into an extra day on the tropical resort island.

"This time the entire membership came together. We have put the 'world'
back in World Trade Organization," he said. "We're back in business...Bali
is just the beginning."

The talks, which had opened on Tuesday, nearly came unstuck at the last
minute when Cuba suddenly refused to accept a deal that would not help pry
open the U.S. embargo of the Caribbean island, forcing negotiations to drag
into Saturday morning.

Cuba later agreed on a compromise with the United States.

TRADE SCEPTICISM

But there was scepticism how much had really been achieved.

"Beyond papering over a serious dispute on food security, precious little
was progress was made at Bali," said Simon Evenett, professor of
international trade at the University of St Gallen in Switzerland. "Dealing
with the fracas on food security sucked the oxygen out of the rest of the
talks."

The talks had begun under a cloud because of an insistence by India at the
outset that it would only back an agreement if there was a compromise on
food subsidies because of its massive programme for stockpiling food to
feed its poor.

India, which will holds elections next year, won plaudits at home for
taking a stand on behalf of the world's poor.

An eventual compromise was greeted with jubilation by Trade Minister Anand
Sharma. While India had insisted on a permanent exemption from the WTO
rules, the final text aimed to recommend a permanent solution within four
years.

But the agreement is a milestone for the 159 WTO members, marking the
organisation's first global trade agreement since it was created in 1995.

It also rescues the WTO from the brink of failure and will rekindle
confidence in its ability to lower barriers to trade worldwide, after 12
years of fruitless negotiations.

The deal would lower trade barriers and speed up the passage of goods
through customs. Analysts estimate that over time it could boost the world
economy by hundreds of billions of dollars and create more than 20 million
jobs, mostly in developing countries.

It still needs to be approved by each member government.

"It is good for both developed and developing members alike," U.S. Trade
Representative Michael Froman said.

RED TAPE

A study by the Washington, D.C.-based Peterson Institute of International
Economics estimated the agreement would inject $960 billion into the global
economy and create 21 million jobs, 18 million of them in developing
nations.

The deal slashes red tape at customs around the world, gives improved terms
of trade to the poorest countries, and allows developing countries to skirt
the normal rules on farm subsidies if they are trying to feed the poor.

The ministers had gathered with a clear warning that failure to reach
agreement in Bali would turn the WTO into an irrelevance and trigger a rush
towards regional and bilateral trade pacts.

It came almost 20 years to the day since a similar nail-biting conclusion
to another marathon negotiation - the talks to agree the creation of the
WTO itself, which wrapped up in mid-December 1993. That was the last global
trade deal.

The Bali meeting was also noticeable for its lack of anti-WTO protests
compared to the street battles when ministers met in Seattle 14 years ago.

The Bali accord will help revive confidence in the WTO's ability to
negotiate global trade deals, after it consistently failed to clinch
agreement in the Doha round of talks that started in 2001 and proved hugely
over-ambitious.

As the Doha round stuttered to a halt, momentum shifted away from global
trade pacts in favour of regional deals such as the Trans-Pacific
Partnership that the United States is negotiating with 11 other countries,
and a similar agreement it is pursuing bilaterally with the European Union.

(Additional reporting by Tom Miles in Geneva, Writing by Jonathan Thatcher;
Editing by Michael Perry)

II.

http://news.yahoo.com/cuba-throws-wrench-wto-talks-over-trade-embargo-025234855--finance.html
Cuba throws wrench in WTO talks over trade embargo
[image: Associated Press] <http://www.ap.org/>
By DESSIANING ARIYANTIDecember 6, 2013 9:52 PM

BALI, Indonesia (AP) — Cuba and three other Latin American countries
refused to sign off on a World Trade Organization agreement early Saturday
that had appeared close to approval after negotiations that dragged on
through the night.
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    Reuters

Dozens of trade ministers were presented with a draft of a slimmed-down
deal that satisfied India, which had earlier refused to budge on a
provision that could endanger subsidies for grains under a policy to feed
its poor.

After consensus appeared close among the 159 WTO member economies, Cuba,
backed by Bolivia, Venezuela and Nicaragua rejected it due to removal of a
reference to the decades-long U.S. trade embargo that Cuba wants lifted.

"We need to continue our consultations and find a way to overcome this
problem," WTO spokesman Keith Rockwell told reporters.

Trade ministers had come to the four-day WTO meetings on Indonesia's resort
island of Bali with little hope that an agreement to boost world trade
would be reached.

But after draft proposals released late Friday put the food subsidy issue
on the backburner, hope for a deal emerged. The proposals also call for
customs procedures to be simplified and more transparent to reduce barriers
to trade.
View gallery
[image: Activists shout slogans during a protest against the&nbsp;&hellip;]
<http://news.yahoo.com/photos/activists-shout-slogans-during-protest-against-world-trade-photo-025234505--finance.html>
Activists shout slogans during a protest against the World Trade
Organization (WTO) in Bali, Indones …

The deal could boost global trade by $1 trillion over time and help revive
the WTO's broader Doha Round of trade negotiations, sometimes known as the
development round because of sweeping changes in regulations, taxes and
subsidies that would benefit low income countries.

The idea is that if all countries play by the same trade rules, then all
countries, rich or poor, will benefit. But some critics say WTO rules may
hinder countries from setting their own priorities in environmental
protection, worker rights, food security and other areas. And they say
sudden reductions in import tariffs can wipe out industries, causing job
losses in rich and poor countries.

The meetings in Bali were seen as crucial after more than a decade of
inertia, with failure possibly signaling an end to the WTO's relevance as a
forum for trade negotiations among its 159 member economies.

___

Associated Press writer Kay Johnson in Mumbai, India, contributed to this
report.

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Peace Is Doable

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