1. WTO MEETING COLLAPSES AMID NORTH-SOUTH DIVIDE


The World Trade Organization Ministerial in Cancun 
collapsed on Sunday amid irreconcilable disagreements 
between Northern nations, led by the United States, and 
southern countries, led by China, India and Brazil.
Negotiations, extending into the wee hours of the morning 
on Sunday, were unable to bridge fundamental differences.

"The Bush Administration acted like total thugs to the 
other WTO member countries," according to Lori Wallach of 
Citizens Trade Campaign.  "The U.S. hurled threats and 
name calling to try to pressure countries, but I think it
backfired. ...  The Kenyan Ambassador representing the 
African bloc walked out, then he was followed by the 
Jamaican ambassador for the Caribbean bloc. As soon as the 
Kenyan got down the escalator we could see on his face 
that
it was OVER and he started telling what happened to those 
near him and then Ambassador Bernal from Jamaica confirmed 
what had happened. There must have been 150 civil society 
folks in here and in short order the Venezuelan, Nigerian, 
Kenyan, Brazilian, and other governments' negotiators
who had stuck out the bullying came down and it was a blur 
of hugs, crying, hoots, etc."

On Saturday Mexican Foreign Minister Luis Ernesto Derbez, 
who chaired the meetings, offered a draft declaration that 
was swiftly rejected by other Southern countries.  The 
proposal "has arbitrarily disregarded views and concerns 
expressed by us," said Indian Commerce Minister Arun 
Jaitley.  "The document is very far from addressing the 
points we wanted," said Brazilian Foreign Minister Celso 
Amorim.

In the final analysis, there were almost no areas of 
agreement between Northern and Southern countries. 
 Southern nations objected to massive agricultural 
subsidies by the US and EU that result in dumping of basic
grains at prices below the cost of production, threatening 
the existence of millions of small Southern producers. 
 Cotton was of particular concern to some smaller African 
and Asian countries that depend on cotton exports for a
significant share of the GDP.

The US, EU and Japan tried to introduce the four so-called 
"Singapore issues" for negotiation, but over 90 members of 
the WTO objected.  The "Singapore issues" would expand 
market access for multinational corporations, regulate 
competition, open government contracts to
multinational bidders and affect cross-border 
transportation.

After the collapse, EU negotiators complained about WTO 
rules that prioritize consensus decision-making.  EU Trade 
Commissioner Pascal Lamy declared, "Despite the commitment 
of many able people, the WTO remains a medieval 
organization. I said this in Seattle, got a lot of flak 
and I have to repeat it here. The procedures and rules of 
this organization have not supported the weight of the 
task. There is no way to structure and steer discussions 
amongst 148 members in a manner conducive to consensus. 
The
decision-making needs to be revamped."  Apparently Lamy 
prefers decisions made by powerful countries behind closed 
doors.

US trade representative Robert Zoellick dismissed the 
concerns of Southern nations in condescending terms: "... 
useful consensus among 148 countries requires a serious 
disposition to focus on the work at hand and not rhetoric
...  [I]f the WTO and its principal members continue with 
rhetoric instead of negotiation, the results will not be 
positive." 

The WTO collapse and an increasingly assertive Southern 
block of "developing" nations represent additional 
elements in the political crisis brewing in Washington. 
 Mired in guerilla wars in Iraq and Afghanistan, and
questioned on growing budget deficits and cuts in social 
programs at home, the Bush administration finds in a 
crisis of legitimacy that helped embolden Southern nations 
to stand firm.  It may be that the failed WTO negotiations
will be seen as a turning point, with Southern countries 
rejecting the neoliberal model and Washington's unilateral 
politics.



2. WTO PROTESTS SEND POWERFUL MESSAGE


Thousands of campesinos, unionists, students, anarchists 
and NGOs dominated much of Cancun this week with protest 
marches and workshops outlining alternatives to the WTO's 
neoliberal agenda.  The largest protests, each about 
10,000-strong, occurred on Wednesday and Saturday, with a 
Korean delegation numbering around 100 taking the lead 
both days.  On Wednesday, Lee Kyung Hae, president of the 
Korean Federation of Advanced Farmers, committed ritual 
suicide during a demonstration at the metal fence that
separated demonstrators from the hotel district where the 
WTO ministerial was held.  Lee was a committed activist 
who saw the neoliberal policies promoted by the WTO as the 
death of campesinos.  According to the Korean delegation, 
Lee's action was not planned, but was not unexpected, as 
he had tried to commit suicide twice before at 
international gatherings protesting the neoliberal model. 
 Shortly after Lee's death, thousands of demonstrators
destroyed a large section of the fence and battled with 
heavily protected police who threw nearly as many stones 
as the protestors.  Lee's death forced Korean negotiators 
to leave the WTO ministerial.

The Korean delegation and a large group of women took 
charge of Saturday's demonstration, dismantling a 
triple-layer ten-foot-high steel fence, then leading a 
ceremony commemorating Lee's sacrifice.  The ceremony 
ended with
hundreds of demonstrators presenting white carnations to 
police.  By that time it was becoming increasingly clear 
that the WTO would end in failure. The demonstration sent 
a powerful message that civil society is capable of
destroying barriers, but also of disciplined action.

Many smaller creative demonstrations also had an impact. 
 On Monday nude demonstrators spelled out NO WTO on a 
ritzy beach near the convention center where WTO 
negotiators gathered.  Later in the week small groups of 
protestors blocked traffic in the hotel zone near the 
convention center for several hours at a time.  On 
Saturday NGOs dumped a bag of genetically modified corn at 
the feet of US officials during a press conference, 
leading
the WTO to ban NGOs from the press center.  Puppets, 
banners and marching bands completed a week of creative 
mobilizations.

The Mexican government reportedly spent US$20 million on 
the failed meetings, plus an additional US$5 million on 
security.