Congress Urges Bush To Stand Firm On Doha Round

by Mike Godfrey, Tax-News.com, Washington

09 December 2008

Key members of the Congressional tax-writing committees in the United States have written a letter to President Bush, urging the administration to stand firm in the Doha Round negotiations at the World Trade Organization (WTO).

The letter, signed by Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa), along with House Ways and Means Chairman Charles Rangel (D-NY) and Ranking Member Jim McCrery (R-La), expresses the signatories’ concern that WTO proposals currently on the table will not provide new market access for American agriculture and industrial goods, and cautions the administration against making concessions to secure a deal this year.

On November 15, 2008, leaders at the G-20 Summit on Financial Markets and the World Economy called on the WTO to strive to reach an agreement in the WTO Doha Round by year’s end.

“While I commend the G-20’s efforts to resolve the financial crisis, their call for an agreement at the WTO by year’s end was premature,” said Baucus. “The deal on the table at the WTO would not provide new trade flows needed to stabilize the global economy. The administration should not agree to any deal that does not deliver for US farmers and firms, regardless of timetable.”

Grassley commented: “I appreciate [US Trade Representative] Ambassador Schwab’s commitment to reaching a strong outcome. But it takes willing partners. If countries like India, Argentina, China, and Brazil are finally ready to sit down and agree on ways to open up meaningful new trade flows, then that’s a reason to meet. Otherwise, there’s no point. No deal is better than a bad deal, and I have yet to see the outlines emerge of what I’d consider to be a good deal.”

Rangel added: “We need an agreement that truly opens new markets for US workers, farmers, and businesses, and raises standards of living. The current drive to establish negotiating modalities puts form over substance, and is driven by an artificial and ill conceived timetable focused on achieving a deal regardless of its merit. The United States should not allow this effort to interfere with the fundamental objectives of creating jobs and new business opportunities in the United States, and raising living standards in the United States and around the world by opening markets and strengthening the rules-based trading system.”

“I firmly believe in the strength, relevance, and resilience of the WTO as an institution,” stated McCrery. “The current condition of the global economy requires nothing less. I am troubled, however, by the refusal of some of our key trading partners to negotiate in earnest. The concessions the United States made in July still sit alone on the table, unreciprocated. While I still hope the Doha Round can be successful, this may not be the best timing for another Ministerial that produces little if any progress.”

In their letter, the members note that little headway has been made since July, when the last WTO Ministerial meeting failed, and that many critical issues remain unresolved. They argue that it is better not to let the clock drive the negotiations or force the United States into a bad agreement that Congress cannot support.

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