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Trade ministers begin make-or-break WTO talks

July 22, 2008 00:00:00


GENEVA, July 21 (Agencies): Top trade officials begin a make-or-break session of world trade talks Monday, haunted by failed efforts in 2006 and 2007 and concern over whether the United States can deliver on a deal.

World Bank President Robert Zoellick has called the meeting "now or never" for the Doha round, which was launched nearly seven years ago with goals to cut farm subsidies and tariffs, and to help developing countries prosper through trade.

The talks also cover manufactured goods and services, areas where rich countries like the United States and the European Union hope to make gains that will help them sell politically painful farm trade reforms at home.

"Soaring fuel and food prices are a stark reminder of the continuing inequalities of global agriculture trade. Developed countries are today responsible for the greatest distortions in the global trading system," Egypt's Trade Minister Rachid Mohamed Rachid said.

"At a time of so much suffering among poorer members, rich nations must resist protectionism, shoulder their responsibility and make the necessary policy changes," he said in a statement.

Brazil's Foreign Minister Celso Amorim, sounding a hopeful note, said this week's meeting could produce a new draft text of a deal in the agriculture and manufactured goods talks.

A paper crafted by World Trade Organisation (WTO) Director-General Pascal Lamy should appear Friday, Amorim said, after a developing country meeting Sunday.

The Doha round, launched in a moment of global solidarity after the September 11 attacks on the United States, has been notable mainly for its meltdowns since then.

One year ago the talks suffered another setback at a meeting in Potsdam, Germany, that showed deep divisions remained between India and Brazil and the United States and the EU over how to reform agriculture and manufactured goods trade.

This week's talks are overshadowed by uncertainty over whether the US negotiators can deliver on any deal reached in the waning months of the Bush administration.

US lawmakers recently approved new farm legislation that could greatly boost farm subsidies if prices fall.

Developing countries are pushing in the talks for deep cuts in rich country farm subsidy and tariffs, which they believe have hurt their farmers for years.

But the United States and the EU say they can only sell a deal that gives them meaningful new export opportunities and developing countries have been resisting that.

Meanwhile, backed by over 100 developing countries, India, Brazil and South Africa will take on the rich nations to get a fair trade deal at the WTO meeting of key trade ministers' begin here today.

Against a backdrop of high crude oil prices and global food crisis, the WTO has convened a five-day mini ministerial meeting with a hope that closing the Doha round can reinvigorate the world economy which is in the grip of a slowdown.

However, wide differences over the extent to opening the markets blocked several rounds of talks, including the ministerial meetings in Cancun and Hong Kong.

For a collective bargain, the developing countries which dominate the 152 WTO membership have aligned themselves into different groupings like G20, G33 and NAMA (Non-Agriculture Market Access)-11.

But, thanks to 'never-say-die' WTO Director General Pascal Lamy and US President George Bush's desire to give a new opportunity to American business before his term expires, pressure was built to achieve an agreement.

While the number of differences has come down, the countries have stuck to their positions when it comes to the crunch of seeking new markets for themselves but protecting their own turf.

WTO Director General Pascal Lamy had said, "A deal to open trade in agriculture and goods means more growth, better prospects for development and a more stable and predictable trading system. We must not let this opportunity slip through our fingers."


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