On June 22, the World Trade Organization restarted Doha free trade talks, one day after G-4 nations walked out over controversial farm subsidies & industrial tariffs.
G-4 members are Brazil, India, the United States and the European Union.
Each member accuses the other of unfairly subsidizing prices for domestic farming sectors which reduces demand for imported farm products. While few countries directly subsidize their industries, G-4 nations point to high tariffs that constrain exports.
G-4 was meeting in Potsdam, Germany. Participants hoped to negotiate compromises that would result in more international trade deals. Instead, a bitter dispute broke that pitted so-called more developed economies (U.S. & EU) against developing countries (Brazil & India).
The World Trade Organization (WTO) responded by calling a meeting to resuscitate Doha global free trade talks.
Many analysts doubt the effectiveness of the WTO. Many countries now negotiate directly with their trade partners, or turn to fellow-members of regional trade blocks.
While G-4 negotiations are now dead, Brazil's Foreign Minister Celso Amorim believes that WTO talks in Doha may have some answers to multilateral disputes on farm subsidies and industrial tariffs.
In contrast, U.S. Trade Representative Susan Schwab said that the U.S. will work with "any country or group willing to resolve the G-4 dispute". Reading between the lines, this comment is far from complimentary to the WTO as the final authority on trade disputes. Rather, it sounds as if the U.S. will negotiate directly with countries or regional groups if the WTO doesn't decide in its favor.
