29 July 2005

Today the WTO’s General Council meeting stalled, missing a crucial deadline for agreeing a framework for a new world trade deal. Rich countries did not manage to force developing countries to agree to negotiations that would have a devastating impact on their economies.

"We challenge Pascal Lamy, the designate director general of the WTO, to halt the talks and start them up again on a radically different track. Lamy has the opportunity to make a real difference to the lives of millions of people in poor countries. Unless he can succeed in putting poor people’s concerns at the centre of the talks, the chance of a deal in Hong Kong is extremely unlikely," says Angela Wauye from ActionAid Kenya.

Negotiation on key issues such as agriculture and market access for industrial goods failed as rich countries were unwilling to make any concessions and continued to pressure poor countries to put more on the negotiating table.

Poor countries have criticised the fact that they have been locked out of key negotiations, many of which happen in secret meetings between elite groups of countries. This allows rich countries to push their own agendas of self-interest, going against their promises to make this round of talks a “development round” that would work for poor people. ActionAid fears that if Pascal Lamy continues to use the same approach as he did when he was EU Commissioner, rich countries will continue with their damaging negotiating positions.

"With only four months to broker a new deal to be agreed at the Hong Kong Ministerial the pressure is on. But rich countries must not think they can get agreement by bullying poor countries into accepting a bad deal. It is time for them to change their tactics and work towards a deal that will help poor people trade their way out of poverty," says Aftab Alam, head of ActionAid’s trade justice campaign.

ActionAid is calling on Pascal Lamy to overhaul the negotiating framework and process at the WTO and end the overwhelming influence of multinational corporations on trade talks. Instead Lamy should ensure that developing countries have access to all negotiations and that the concerns of poor people and civil society groups are heard loud and clear.