World Business Press Online, LONDON -

Pakistan, Brazil or India will try even harder to fight protectionism of developed states, since the scientists warn that climate change (and hot temperatures) will slow down the economic growth mainly in developing countries. At the summit of important agricultural exporters that is taking place in Bali, they remind rich countries of their promises from the G20 meeting in London. All countries agreed then, that the Doha round must be re-opened, otherwise the world economy cannot be brought back to life. In the meantime, the hopes of those who believe in free trade have been devastated both by Russia and the US. Moscow has exploited the exaggerated panic from the H1N1 virus and banned the meat imports from the US. Putin probably tries to blackmail Washington so that Russia does not have to wait so long for the World Trade Organization membership. Washington is to blame too, due to the introduction of the pro-export subsidies for the US dairy products. In spite of the fact, that the US only reacted to the similar step of the European Union, Australia, which is a long term American ally, is justly outraged. However, there is nothing left to do but trust, together with other WTO members, Ron Kirk (chief American trade negotiator) whose last conciliatory words have been encouraging. If the Doha negotiations start before July, as signaled in Bali, it is going to be a hard fight between the US and India again. Given they reach consensus; around 150 bn dollars will be created by new trade flows. The world in the midst of the crisis would be stupid, if this money is thrown away due to selfishness of both sides.

Milan Sebo