WTO trade talks in Geneva fall apart

The U.S. is blaming China and India for refusing to cut farm and industrial tariffs. As usual, ShopFloor.org is all over the story. They have links to numerous news articles here. They have excerpted a statement from the President and CEO of their parent organization, NAM, here:

The “Special Safeguard Mechanism” demanded by China and India for their agricultural sectors was the final straw. That mechanism would have violated one of the most basic tenets of the world trading system: nations do not violate their tariff bindings by raising tariffs above the legally-bound levels. Once an exception is made, no matter how small, the entire world trading system could begin to unravel. The Doha Round was supposed to move world trade forward, not backwards.

It is regrettable that China and India in the end refused to stick with the rules and wishes of the majority of countries. However, we must face the reality of what they did. It is important to note, however, that other developing countries, especially Brazil, made it plain during the Geneva talks that they were prepared to enter into give and take negotiations, and that is a positive development.

Statement from U.S. Trade Representative Susan Schwab here, and they have a link to an interesting article from a German daily here:

China and India have taken the stage, powerfully. They represent their own interests, hard as stone, and will support free trade only as far as it benefits them. The former industrial powers will come to rue the day, bitterly. Geneva was just a taste of what’s to come.

All in all, a bad day for free trade. I imagine this will facilitate the growth of bilateral trade deals between the U.S. and individual trade partners.