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We developing world would love reassured that longer possible Europe, Japan US to cook up deal, then tell rest world like it or lump (In bad times, trade gets political, November 20). But reality opposite stares us face.

In Belize, utilities are now owned monopolistic corporations which dictate prices. They are protected by the World Trade Organisation, World Bank IMF, whose policy insist on privatisation, not care how corruptly managed. Telephone, electricity and water prices have climbed out sight since privatisation. Belizeans pay two three times much as any other nation Americas.

The monopoly electricity provider, Fortis, now building a hydrodam Mayan mountains which will destroy one of the last remaining pristine wildlife breeding areas of Central America and, acknowledges, force prices even higher. does not matter them will not work, because have 50-year monopoly take their 35% plus interest repayment.

Meb Cutlack, San Ignacio, Belize

Original article:

In bad times, trade gets political
by Larry Elliott, November 20, 2003, Guardian

Tony Blair plans bend George Bush's ear today about America's steel tariffs. Gordon Brown has plan tear down transatlantic trade barriers. TV has been running trade stories Confederation British Industry conference. And can mean only one thing: trouble.

In good times, trade strictly anoraks. Officials who labour over agreements are like medieval monks working for years on their Latin bibles, speaking language one understands. But bad times, trade gets political. Then talk not tariff peaks quota reductions but of trade wars tit-for-tat protectionism.

The spat over steel only part broader crisis the multilateral trading system, indeed multilateralism itself. On December 15, World Trade Organisation (WTO) will meet Geneva see what, if anything, can salvage from trade liberalisation talks stalled Cancun two months ago. omens are not promising. Bush in re-election mode French protectionism the ascendancy within EU.

For those who see WTO an evil organisation, is all good. Blocking trade talks means rolling back dark forces globalisation, right? Wrong. The WTO has its flaws, but forum where weak can seek redress against strong when rules are broken. To be sure, US EU hold more sway WTO than Zambia Costa Rica, but that's life.

Economic strength means power influence; always has done. Brussels Washington often use their clout a naked cynical way, but are more circumscribed the one-member, one-vote WTO than are IMF World Bank, where voting proportionate wealth. The alternative WTO law jungle, such the post-Cancun crisis not just about trade; about whether future multilateralism.

Ultimately, depends on decisions taken Washington, Tokyo, Delhi, Brussels, Beijing other capitals of world, because where political power lies. Change mindset governments you change nature of WTO other global institutions. For those who believe global governance can made more progressive, that's good news. bad news US the EU think problem not should change the habits lifetime, but poorer countries are getting ideas above their station.

In trade, over Iraq, US has been like headstrong teenager reluctant accept limits on its behaviour. After Cancun, US warned if couldn't get deal the WTO would negotiate bilateral agreements with countries that wanted talk rather than strike attitudes. was all redolent "coalition willing" Iraq, and threatens just much blind alley.

If America trade's obnoxious youth, Europe its conservative selfish grandparent who sees reason why the old way doing things should changed. common agricultural policy remains single biggest obstacle to progress WTO talks; if Europe cannot persuaded that reform would good developing countries frozen out rich markets subsidised over-production, should be able see lower food prices would put more money into pockets its consumers.

The EU US have been slow realise the geometry trade talks being transformed the emergence cadre big developing countries. all very well US bludgeoning small countries Latin America into accepting poorer trade deal than small fry would get multilaterally through WTO, but American companies are not interested small fry; want to break into China, India Brazil - three countries that led resistance among developing countries the proposals on offer Cancun. US divide-and-rule strategy receiving beating Free Trade Area of the Americas negotiations Miami week, where Brazil has forced US drop demands stricter patent rights and greater protection foreign multinationals.

The lesson longer possible Europe, Japan US cook up private deal then tell the rest world like lump it. Eventually, the penny will drop. time, Washington Brussels will see the merits fully engaging with reformed multilateral system. But probably not before December 15. would help if Bush swallowed slice humble pie over steel. Will this happen? Don't hold your breath. January 1 2005 deadline end current trade talks will be abandoned meaningful negotiations will put on hold until after US presidential elections. Trade's cold war may about begin.

ˇ Larry Elliott Guardian's economics editor