As the world's attention focussed on the impeding war against Iraq, WTO Director-General Supachai Panitchpakdi gave a speech at the Geneva Graduate Institute for International Studies, warning of the negative repercussions in the area of trade that a weakening of multilateralism may bring forth. At the 17 March event, he warned that the war would further harm the already stalling talks. WTO Members would have to "redouble their efforts" after the outbreak of a war to "heal the wounds" and get the trade talks back on track, he said. Other observers have cautioned that the rift on the Iraq war between the US on the one hand and France and Italy on the other, could translate to the trade front. The US and EU are already far apart on issues such as agriculture and genetically modified organisms (GMOs). Supachai also expressed concern that the war would refocus Members' attention on military affairs and away from important trade negotiating deadlines.

On the long-term effects of the current situation, Supachai hoped for more concerted action leading to results in Cancun and at the end-2004 negotiating deadline, warning that "if we're not careful and send the right signals, we might have to put up with another recession".

Focus on the regions

Supachai also drew attention to the proliferation of bilateral and regional trade agreements. He warned that the rise in these accords could put a damper on multilateral negotiations, and that the agreements could lead to distortions as countries of different levels of development pursue their own narrow interests. Speaking at an earlier event in Bangkok in February, Supachai said that, "the some 270 (bilateral and regional) agreements that we have seen will probably rise to 300 in two years. No one has taken the time to see whether these accords are reached under the regulatory framework of the WTO," and warned that bilateralism and regionalism should not be pursued at the expense of multilateralism. The US recently finalised bilateral agreements with Chile and Singapore, and has started negotiations on trade accords with Australia, Morocco, the Southern African Customs Union, and the Central American Common Market.

"WTO Chief Cites Fears of Impact Of War With Iraq on Global Trade Talks," WTO REPORTER, 18 March 2003; "U.S. policy could threaten international trade, aides warn," NEW YORK TIMES, 15 March 2003; "Rise in Bilateral Trade Accords Worries WTO Chief ," REUTERS, 19 February 2003.