The WTO After Cancun: The Challenge to Multilateralism

The collapse of theWTO Ministerial Conference in Cancun on 14 September 2003 has had a negative impact on the role of multilateral trade negotiations. In East Asia, governments have reacted by calling for greater regionalism while it has reinforced the trend towards bilateral and regional free trade area (FTA) negotiations. This analysis discusses why the WTO Ministerial Conference failed, the impact on future global trade negotiations and the rationale for the East Asian shift towards bilateral and regional FTAs. It is argued that Cancun and the war in Iraq are portents of a retreat from multilateralism and a turn towards coalitions of the willing not just by the United States but by other major players in the international system.