WORLD / Europe
Divisions likely to cloud WTO push for trade deal
(Reuters)
Updated: 2007-07-26 01:56
GENEVA - Deep divisions between rich and poor countries, and within the
developing world itself, are likely to cloud a September push for a
long-sought global free trade pact, diplomats said on Wednesday.
Negotiators at the World Trade Organisation (WTO) in Geneva voiced
discontent over proposals to break a deadlock in the talks, which have
dragged on for nearly six years, over tariffs on industrial goods such as
textiles, chemicals, fuels and cars.
The United States said the range of cuts suggested by Canada's ambassador
to the WTO, Don Stephenson, who chairs negotiations on non-agricultural
market access, known as NAMA, were not big enough to boost global trade
flows.
"It is very obvious that there is going to have to be a lot of
negotiating because there are rather large differences between
countries," U.S. ambassador Peter Allgeier said on the sidelines of a
session on Stephenson's proposals, which will form the starting point for
talks after an August break.
"The pressure is on all the negotiating teams here when we come back in
September to really bring this thing to a successful conclusion,"
Allgeier told reporters.
Poor countries in the NAMA-11 group, which includes Brazil, Indonesia,
South Africa and Egypt, told the Geneva session the proposed cuts were
"too onerous" and "not consistent with the development needs" of nations
that were meant to benefit from the trade talks, known as the Doha round.
Export-dependent emerging powers such as Mexico, Chile and Thailand
voiced support for the proposals, which said developing countries should
cut import tariffs more than they have offered, though less than rich
nations do.
Poorest Nations
The world's poorest countries would be shielded from cuts under a Doha
deal, which would also include steps to open up farm and services
markets. The World Bank has said the pact could add $96 billion annually
to the global economy.
Stephenson said his plans, floated last week, were intended to "challenge
everyone" to inch toward consensus in the talks, which have struggled
since their 2001 launch to overcome poor countries' fears of exposing
their industry to more competition.
"I really do believe, based on what you told me, that you will have
difficulty finding consensus too far below or too far above the numbers I
have proposed," he told the session.
Parallel negotiations on farming subsidies and tariffs, chaired by New
Zealand ambassador Crawford Falconer, are also due to resume in September
in a concerted push toward wrapping up the main elements of a Doha deal
in 2007.
While the two issues are being negotiated separately, many countries are
seeking trade-offs in one area to make concessions in the other.
Both Stephenson and Falconer said they would not impose new deadlines on
the talks, saying concluding the Doha accord "will take the time it
takes."
WTO Director-General Pascal Lamy has been urging countries to conclude
the agreement this year to avoid having talks spill over into U.S.
presidential election period in 2008, when Washington would have less
room to manoeuvre.
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