The Doha Round of global trade talks collapsed amid bitter recriminations last week. Officially, the talks are in "indefinite suspension," but they are as good as dead if governments do not make fundamental changes in their thinking. That means facing down powerful domestic agricultural lobbies and taking the long view on the benefits of continuing liberalization. A more immediate concern is that bureaucratic energy will shift to other trade negotiations, a far less satisfactory alternative.
As feared, a last-ditch attempt by key countries -- Japan, Australia, Brazil, the European Union, India and the United States -- failed to revive the Doha Round. As expected, agriculture was the culprit. The U.S. continued to demand greater cuts in tariffs on farm imports and more access to foreign markets. Just about everyone -- Australia was the lone exception -- balked, insisting on more cuts in subsidies to U.S. farmers, a step Washington was not prepared to take without guarantees from its trade partners.
Attempts to reach agreement were also complicated by developed nations' insistence on increased access for their products in developing nation markets. The stalemate forced Mr. Pascal Lamy, the director general of the World Trade Organization, to formally suspend the talks, because there was no political will to make a deal.