After all the U.S. anger over European veto threats at NATO and the U.N., the latest round of World Trade Organization talks showed that America still knows how to derail international negotiations when it’s in the mood. The Doha trade round, which was meant to bring poor countries into the world economy when it launched in 2001, was on the skids last week, after negotiators deadlocked over plans to provide cheap medicine to the developing world. The deadline for an agreement has passed, and passed again. But still the U.S. shows no signs of backing down from its lone veto of a plan agreed on by 143 other countries that would allow the poorest — without manufacturing capabilities of their own — to import generic drugs that are still patented in wealthy nations. “It goes right to the heart of whether the WTO can work or not,” says Nathan Ford of Doctors Without Borders, a group pushing hard to loosen restrictions on generics. So far, it isn’t working. The U.S. pharmaceutical industry, with American sales of $192 billion last year, is keen to limit imported generic drugs to those treating malaria, TB and aids, fearing a broader agreement could create a generic market in lucrative “lifestyle drugs” like Viagra. Worse, they fear generics could migrate back to countries where patents are protected. Of course, developing countries would have more money to pay for drugs if they could sell their produce on a world market undistorted by tariffs and subsidies — but WTO talks also bogged down on that front, this time thanks to Japan and Europe, where powerful farmers have turned subsidies into a €40 billion-a-year industry. As negotiators seek a solution everyone can agree to by the March 31 deadline, agricultural interests and drug companies from the wealthy world show no signs of retreating. But if the WTO fails to make real progress soon, they may lose a more important war.
Bring ’em All Back Home
The current diplomatic flap over Iraq may be sparking American threats to boycott French companies, but one French organization hopes to siphon off some of the steam. Provence Promotion — an association that recruits new businesses to the Marseilles area — is trying to lure successful expats back from America. Since September, the Home Sweet Home program has contacted over 5,500 French entrepreneurs and specialized workers in New York, Silicon Valley and southern California with offers to help relocate or open new businesses. The program — now targeting Atlanta, Boston and Miami — has enticed four U.S.-based French business owners to come back; another 15 are thinking about it. Director general Guy Giustini says: “We’re encouraging successful entrepreneurs and skilled workers — French and American — to expand their activity to Europe via Marseilles, not close shop in the U.S. It’s not a zero-sum logic.” It’s no huge job engine; the businesses launched under Home Sweet Home involve around 80 employees. But some are impressed. “I was surprised to see how many solid and savvy business partners were already here,” says Olivier Zelphati, returning after eight stateside years to start his own bio-biz. “It’s got virtually all California has.” Plus the Mediterranean.
Vive la Sickie!
Workaholics they’re not, but a new study by the U.K.’s Trades Union Congress says British employees do have an addiction that cost the economy €3.37 billion last year. Some 14.8 million workdays are lost annually because of alcohol-related illness or workers pulling “sickies” after a hard night out. But Britain’s loss might be France’s gain — a separate, but probably not unrelated study also found that Britain now leads the world in sales of imported wine.
INDICATORS
What A Drag It Is Getting Old
New research from CSFB shows that the 1113 billion pension fund deficit at Britain’s top companies equaled 93% of last year’s profits. One of the worst hit is defense contractor BAE, which holds talks this week to try to avert a strike by employees being asked to pay more toward their own retirement.
This Just In … You’re Sacked
Under fire from competitor Bloomberg, the 151-year-old business information group Reuters will cut 3,000 jobs, or 20% of its workforce, after announcing a €725 million loss.
Deficit Disorder
The euro zone trade surplus for 2002 doubled to €102 billion, due more to falling imports than rising exports. But that’s better news than in the U.S., where the trade deficit hit a record $435 billion.
THE BOTTOM LINE
‘We no longer serve French fries. We now serve freedom fries.’
Sign on the window of Cubbie’s restaurant in Beaufort, North Carolina, as an informal American boycott of all things French starts to hit below the belt