TEXT B Cancun means "snakepit" in
the local Mayan language, and it lived up to its name as the host of an
important World Trade Organization meeting that began last week. Rather than
tackling the problem of their high agricultural tariffs and lavish farm
subsidies, which victimize farmers in poorer nations, a number of rich nations
derailed the talks. The failure by 146 trade delegates to reach
an agreement in Mexico is a serious blow to the global economy. And contrary to
the mindless cheering with which the breakdown was greeted by antiglobalization
protesters at Cancun, the world’s poorest and most vulnerable nations will
suffer most. It is a bitter irony that the chief architects of this failure were
nations like Japan, Korea and European Union members, themselves ads for the
prosperity afforded by increased global trade. The Cancun
meeting came at the midpoint of the W.T.O.’ s "development round", of trade
liberalization talks, one that began two years ago with an eye toward extending
the benefits of freer trade and markets to poorer countries. The principal
demand of these developing nations, led at Cancun by Brazil, has been an end to
high tariffs and agricultural subsidies in the developed world, and rightly so.
Poor nations find it hard to compete against rich nations’ farmers, who get more
than $300 billion in government handouts each year. The talks
appeared to break down suddenly on the issue of whether the W.T.O. should extend
its rule- making jurisdiction into such new areas as foreign investment. But in
truth, there was nothing abrupt about the Cancan meltdown. The Japanese and
Europeans had devised this demand for an unwieldy and unnecessary expansion of
the W.T.O.’ s mandate as a poison pill--to deflect any attempts to get them to
turn their backs on their powerful farm lobbies. Their plan worked.
The American role at Cancun was disappointingly muted. The Bush
administration had little interest in the proposal to expand the W.T.O.’ s
authority, but the American farm lobby is split between those who want to profit
from greater access to foreign markets and less efficient sectors that demand
continued coddling from Washington. That is one reason the United States made
the unfortunate decision to side with the more protectionist Europeans in
Cancun, a position that left American trade representatives playing defense on
subsidies rather than taking a creative stance, alongside Brazil, on lowering
trade barriers. This was an unfortunate subject on which to show some rare
trans-Afiantic solidarity. The resulting "coalition of the unwilling" lent the
talks an unfortunate north-versus-south cast. Any hope that the
United States would take the moral high ground at Cancun, and reclaim its
historic leadership in pressing for freer trade, was further dashed by the
disgraceful manner in which the American negotiators rebuffed the rightful
demands of West African nations that the United States commit itself to a clear
phasing out of its harmful cotton subsidies. American business and labor groups,
not to mention taxpayers, should be enraged that the administration seems more
solicitous of protecting the most indefensible segment of United States
protectionism rather than of protecting the national interest by promoting
economic growth through trade. For struggling cotton farmers in
sub-Saharan Africa, and for millions of others in the developing world whose
lives would benefit from the further lowering of trade barriers, the failure of
Cancun amounts to a crushing message from the developed world --one of callous
indifference. Which of the following statements is true about the America’s role at Cancun meeting
A.America supported the expansion of W.T.O.’ s jurisdiction on foreign investment. B.America supported such nations as Brazil, Mexico and African countries. C.America took a stand on government economic protection for domestic producers through restrictions on foreign competitors. D.America took a moral high ground in pressing for freer trade.