'Landmark’ trade deal collapses
05/08/2014
Reached at a ministerial meeting in Bali, Indonesia, last December, the TFA would have reduced trade barriers and eliminated border transaction costs that hinder many international trade flows. A recent study by the World Economic Forum estimated that the TFA would stimulate the world economy by one trillion dollars.
Juanita Duggan, CEO of the American Apparel and Footwear Association, said: “Not only does failure in Geneva dramatically damage the WTO, but it also removes one trillion dollars from the world economy, including from the countries that blocked the landmark deal. Trade ministers from around the world should save the TFA talks immediately."
Apparel and footwear are some of the most heavily traded consumer goods on the planet. The clothing and shoe industries require sophisticated global supply chains so that today’s fashions make their way to consumers all over the world.
“Everybody who wears clothes and shoes will be adversely affected if the TFA is allowed to die,” she added.
India voiced a last minute veto: the deadline for agreement was July 31. The country insisted that, in exchange for signing the agreement, it must see more progress on a parallel pact giving it more freedom to subsidise and stockpile food grains than is allowed by WTO rules.
"I remind you that 31 July is not my deadline - it is a Bali deadline decided by ministers - and a deadline that many delegations have made clear we must observe," said Roberto Azevêdo, director general of the WTO.
“We have not been able to find a solution that would allow us to bridge that gap. We tried everything we could. But it has not proved possible.
"The fact we do not have a conclusion means that we are entering a new phase in our work – a phase which strikes me as being full of uncertainties."
Share this story:
