Bribery and bureaucracy seen as ‘winners’ if WTO deal fails

GENEVA, Nov 27, (RTRS): Barring a last-minute deal by ministers next week, the latest round of world trade talks look set to fail, but unlike past liberalisation battles, few people are cheering.

The World Trade Organization’s “trade facilitation” proposal — aimed at simplifying customs procedures — was meant to be something no country could seriously object to, except perhaps petty bureaucrats and corrupt border guards.

And although many developing countries wanted time and money to help them adjust, nobody was arguing wholesale against the reform, unlike in previous talks where there was opposition in many countries to policies that would have cut farm subsidies or increased the outsourcing of jobs.

The trade facilitation proposal aimed to force all 159 WTO members to make their customs procedures public and predictable, ensure quicker passage for goods in transit and make sure the fees for crossing borders were reasonable.

Importers and exporters would be able to do much more paperwork in advance and online, and complete it in one go, without having to get stamps from consulates or worry about crossing endless checkpoints while transiting third countries.

Beneficiaries of the deal would range from women carrying goods across African borders to container shipping giants such as A.P. Moller-Maersk and express parcel firms such as DHL, FedEx and UPS.

“The trade facilitation deal is notable in that its impacts will be felt across the board, without favouring any specific industries or sectors,” Victor Fung, former chairman of global exporter Li & Fung Ltd and honorary chairman of the International Chamber of Commerce, said in emailed comments.