--By TC Correspondent

 

Since the formation of the World Trade Organisation (WTO) in 1995, member nations of the global trade body on Saturday reached the first ever trade deal. 

 

WTO’s Bali Ministerial Conference held in Bali, Indonesia, approved the “historic” ‘Bali Package’ after Cuba dropped its threat to veto the package of measures that primarily aims at facilitating commerce between member nations by reducing trade barriers. 

 

The agreement aims to boost the global commerce by adding USD 1 trillion into the world economyover the coming years and add 21 million jobs in the global labour market. 

 

The agreement simplifies trade procedures for the poorest countries to sell their goods in international market.It is expected to lessen barriers for the least developed countries (LDCs) in exporting their products in international market. Similarly, the agreement aims to establish a global system to make agricultural sector more competitive. 

 

The agreement came at a moment when the WTO was standing on the brink of failure following more than a decade of fruitless negotiations to enact the Doha Round (2002) plans. 

 

Many experts had warned that failure in Bali would leave regional and bilateral trade arrangements as the only platform for trade reform, dividing the world and jeopardising the goal of globalisation of the WTO.

 

“For the first time in our history, the WTO has truly delivered,” said WTO Chief Roberto Azevêdo, while closing the conference.” All members, developed or developing, have the ownership of the Bali deal. We have put the “world” back into the World Trade Organisation. We’re back in business...Bali is just the beginning.”

 

In his closing remarks former Chief Trade Negotiator of Brazilechoed the quote of late South African leader, Nelson Mandela, “It always seems impossible until it’s done,” to sum up the achievement of the conference.

 

The Bali meeting which opened on 3rd December, Tuesday, was overshadowed by disagreements between India and a group of developed nations led by the United States. Because of its massive programme for stockpiling food to feed its poor, India had insisted that it would only back an agreement if there is a compromise on food subsidies. 

 

On the other hand, US and some industrialised nations urged India to end the food security policy as it breaches and contradicted the subsidy policies of the WTO. The differences narrowed as the opposing sides clinched towards a provision to give developing nations more scope to use subsidies for safeguarding food supplies. Similarly, Cuba also later agreed on a compromise with the US. During the negotiations, the Caribbean Island nation had refused to accept the deal if the US did not end its long-time economic embargo.