The World Bank and the OECD join the Doha Round champions’ clan

On the occasion of two recent reports published the same day, the World Bank and the Organization for Economic Cooperation and Development (OECD) both reassessed the urgency to conclude the World Trade Organization’s (WTO) Doha Round.

On March 17 indeed, the World Bank published a report which stated that, contrary to their commitment to keep their borders open despite the crisis, 17 out of 20 G20 members have taken protectionist measures since their last meeting in Washington last November. At international level, the World Bank lists 66 measures which can negatively impact trade, of which 47 have already been implemented. This assessment, in the World Bank’s opinion, reinforces the need to boost international negotiations initiated under WTO sponsorship.

A conclusion which the OECD fully supports: accusing in its latest report the export reduction policies applied by some emerging countries to manage the 2007-2008 food crisis, the Organization asserts that “the reduction of trade obstacles” is an essential element to guarantee food security.

However, both international institutions have joined numerous other voices which consider that the Doha Round is the panacea, without taking into consideration the lasting destabilisation risks which a non-regulated exchange liberalisation would represent for world agricultural markets and therefore for international food security. Indeed, right now it seems particularly risky to push in the direction of an agricultural sector liberalisation when its consequences are not yet well identified. Just as in the financial sector the recommended solutions haven’t been to develop transactions or to accelerate lending between banks, it would be wise to take some distance regarding the current situation in order not to precipitate agricultural markets into exacerbated instability.