"Bold Challenge" to US/EU Hegemony

From: World Bank Press Review [mailto:devnews@worldbank.org]

At a news conference ahead of today's opening of the WTO ministerial conference, the "Group of 21" developing nations also announced an alliance with Oxfam, the international humanitarian aid and development group, in a bid to rally support from globalization opponents. The announcement amounts to a bold challenge to the hegemony of the US and EU in setting the world's trade rules and agenda. The developing countries maintain that they have popular support on their side, as their group represents more than half the world's population and two-thirds of its farmers.

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The Financial Times notes that the Cairns Groups and the Group of 20 want the Cancún meeting to set a firm date for eliminating all forms of export subsidy and big reductions in trade-distorting domestic support. However, they differ over how far poorer countries should have to open their markets. The daily further reports that some campaigners have vowed to reduce the meeting to a stalemate, claiming they have persuaded poorer countries to oppose trade liberalization. Walden Bello of Focus on the Global South, which advises several developing countries on WTO tactics, said failure to agree in Cancún would be the best possible outcome.

However, more mainstream groups such as Oxfam, Christian Aid and ActionAid are taking a more positive stance, saying elimination of barriers and subsidies by the US, the EU and Japan is essential to global economic development.