Zoellick backs WTO proposals to spur trade talks

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WASHINGTON, July 21 (Agencies): World Bank president Robert Zoellick backed yesterday fresh proposals to drive the deadlocked round of World Trade Organisation (WTO) negotiations to a conclusion this year.
"A major final push will be needed to close the gaps but, with the right spirit, there is now a deal on the table to be seized," said Zoellick, who led US trade negotiations between 2001 and 2005.
It was a strong endorsement by the new head of the poverty-fighting World Bank, the 185-nation lender whose mission is to spur development.
Negotiators at the WTO issued Tuesday proposals on agricultural and industrial trade to revive the Doha development round, dedicated to reducing global trade barriers and encouraging development.
Under the proposals, the US would cut farm subsidies to below 16.2 billion dollars a year, compared with a current ceiling of 19 billion dollars, and 27 developing nations would reduce industrial import tariffs to less than 23 per cent. Brazil and India have been seeking 30 per cent to protect their fledgling industrial growth.
The European Union would slightly reduce its import farm tariffs to between 52.0 and 53.5 per cent, within a range European Union Trade Commissioner Peter Mandelson has indicated he is ready to accept.
The Doha round of talks, revived in February after a six-month hiatus, suffered another jolt last month when the key negotiators-the United States, European union, India and Brazil-failed to agree on the extent of tariff and export subsidy cuts.
The WTO's 150 members are at odds over the extent of potential new reductions in barriers to trade in agriculture, industrial goods and services.
Developing nations say rich nation agricultural subsidies artificially depress prices and prevent their small farmers from competing on world markets.
Meanwhile, India yesterday said the new formula suggested for reaching an agreement on agriculture and industry tariffs at the WTO is a good basis for negotiations to resume for completion of the stalled Doha round of talks.
"NAMA (the new draft text on non-agriculture market access and agriculture) is a good basis for starting intensive negotiations," Commerce and Industry Minister Kamal Nath said on the sidelines of a function to launch e-filing of patent and trademark applications.
The minister said he talked to WTO Director General Pascal Lamy Friday and told him "this is not a text of convergence. It is a text that will lead to further negotiations".
When negotiations start in September, India hopes that the mandate of the Doha round to speed up development of poorer countries is addressed.