The summer of 2013 is history now. The new target for concluding the ITA talks is the WTO's ministerial meeting in Bali this December (the 3rd through the 6th). That new target was underscored by the Director-General of the WTO,
Roberto Azevêdo, in his remarks to APEC Ministers on October 4. "I would urge those of you involved," he said, "to press on [with the ITA negotiations] with a view, hopefully, to the harvesting of a product expansion package in December."
Will such a package be negotiated? Count us as qualified optimists - the qualification being that we recognize how foolhardy it is to predict the outcome of any negotiation.
Looking back, those who want to see the ITA product coverage list updated and expanded wanted the deal done this summer for two reasons. There was the obvious one that the sooner the deal was done, the sooner its benefits would kick in. But there was another reason as well. Having the ITA package seen as a Bali deliverable might entangle it in the broader politics surrounding the WTO ministerial. Understandably, that's something the ITA proponents wanted to avoid.
That could still happen, but it shouldn't. ITA is a plurilateral agreement. When Russia joined the ITA this past summer, it brought the number of participants up to 78. That's a lot, and those countries account for some 97 percent of world trade in information technology products, but it is less than half of the WTO's total membership of 159.
An ITA agreement would be a boon for the world and a plus for the reputation of the WTO. But for the organization writ large, the ITA is not the test that matters.
The test that matters is the multilateral deal being worked on for Bali, one to be agreed to by each and every member and that includes language on Trade Facilitation, on Agriculture (in some fashion, possibly a peace clause), and on Development.In his remarks yesterday - pep talk really -- to the WTO's General Council, Director-General Azevêdo said,
"the reality is that the pace of substantive advancement is still far too slow for our Bali targets." In closing, he advised the members - the Geneva ambassadors and their staffs - to clear their calendars for the weeks ahead.
"Starting Monday," he said,
"every hour is a working hour and every day is a working day."We admire his spirit and do not doubt that great efforts are being made to make the Bali Ministerial a success - with ITA as an ornament, not the tree.
And we are mindful too of something in today's Washington Trade Daily. In an article on the broader Geneva negotiations, that publication declared:
"Whatever has to be adopted at the ministerial conference will have
to be endorsed by the General Council at its last meeting next month. There will be no negotiations at the December 3-6 Ministerial."
Perhaps. Our own suspicion is that the keys to success (or failure) for the WTO in December are locked away in the minds of two or three political leaders of two or three countries, and we are not likely to see them or know their meaning much before that fateful first Friday in December.