Poor nations keep heat on trade

To deflect the developing countries' position, the rich countries offered only vague commitments on farm subsidies and import barriers. The Europeans and Japanese also insisted that the Cancún talks extend to trade issues covering investment, competition, and government procurement of goods and services - issues many developing countries were either unprepared or unwilling to discuss.

It was on this final point that the G-22 nations abruptly left the table. "It was easy to form a coalition because the frustration level was so high," Mr. Barbosa says. "In one week we gained the support of 60 percent of the world's population and represented more than half of global agricultural production."

The larger members of G-22, which is led by Brazil, China, India, and South Africa, also include Argentina, Mexico, Indonesia, Pakistan, and Nigeria. The chief question facing the diverse group is whether it will hold together as the Doha round proceeds.

For one thing, divide and rule is a favored tactic of the advanced nations. For another, the group's internal differences are many. While, Brazil is a major exporter of farm goods and stands to gain from open markets, for instance, India remains highly protective of its farmers.

"What has emerged for the first time in international trade is a serious negotiating coalition of developing countries," says Richard Newfarmer, a trade expert at the World Bank. "But it hasn't been tested at the bargaining table yet, and whether it succeeds there remains to be seen."

Many observers nonetheless see a key success for developing nations buried in the failure at Cancún. Their ability to form a united front for the first time reflects years of effort by the UN, the World Bank, other multilateral groups, and nations such as Canada and Brazil to improve the trade expertise and negotiating capacity of countries that have typically been overwhelmed in forums such as the WTO.

"The higher level of technical competence among less-developed countries was one of the most positive aspects of Cancún," says Hafiz Pasha, an assistant secretary-general here who was at the talks.

Another question now facing the G-22 is whether it will attempt to extend its influence beyond the issue that led to its creation. Even some diplomats instrumental in forming the group say that for now, it is "a marriage of convenience," as one put it.

At the same time, it is widely acknowledged that the Group of 22 is symptomatic of a newfound self-confidence among developing nations. As a measure of this, Brazil, India, and South Africa announced here last week that they would form a "trilateral commission" to encourage cooperation on issues such as hunger, health, and poverty eradication. "These countries are the core of the G-22," says Pasha. "Their intent is to show solidarity among the larger developing countries - and ultimately to introduce some balance on a wide range of international questions."

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