THE FAILURE IN CANCUN

The Economist, in its editorial on September 20, 2003 warned that the World Trade Organization (WTO) is in enormous trouble after the collapse of its meeting in Cancun, Mexico. The Economist asserted that if trade negotiations continue to crumble, the WTO may become entirely “irrelevant to the conduct of trade policy.” The magazine listed several reasons for the collapse of the global trade negotiations. Chief among these reasons are: the wealthy countries unwavering commitment to maintain subsidies to some of their respective vocal constituencies, such as farmers and labor in labor intensive industries; the unwillingness of poorer countries to further lower their own trade barriers; the tremendous influence that non‐government organizations (NGOs) on trade negotiations; and the preference among the leading wealthy countries of bilateral and regional trade deals over multilateral agreements. The last reason stands to be the most devastating factor to free global economy and may initiate regional grouping and division that worsen conditions for poor countries, and ultimately jeopardize the goal of establishing a free global economic system.