APEC leaders to press for urgent revival of deadlocked world trade talks
Tuesday, 4 September 2007
SYDNEY, Sept 3 (AFP): Asia-Pacific leaders will this week press for the urgent revival of deadlocked world trade talks and urge crucial concessions from the major players, according to a draft statement seen today.
Hailing upcoming negotiations in Geneva as an "unparalleled" opportunity to make progress, the Asia-Pacific Economic Cooperation forum (APEC) will make a last-ditch appeal to sparring trade nations.
The appeal comes with key negotiators due to gather for intensive discussions this week in Geneva aimed at sealing an agreement that would save the Doha round of World Trade Organisation (WTO) talks on breaking down global trade barriers.
"We all realise that the stakes are high. Time is running out," said David Spencer, Australia's ambassador to APEC.
The 21-state Pacific rim group, which includes China, Japan and the United States, accounts for nearly 50 per cent of world trade and 56 per cent of global gross domestic product.
In the draft statement the leaders "pledge to push hard for the progress necessary to ensure the Doha round negotiations enter their final phase this year."
"There has never been a more urgent need to make progress," they will say.
"The negotiations offer unparalleled potential to lower barriers to trade and to create a freer, fairer and more secure global market in which we can all compete.
"We insist that consensus will only be possible on the basis of an ambitious, balanced result that delivers substantial, real market access for agricultural and industrial goods and for services, as well as reductions in trade-distorting agricultural subsidies."
The statement holds out hope that the Doha talks could still succeed.
"The negotiations are undeniably difficult and complex. But real progress has already been made in many areas and it is our firm view that the remaining differences can be successfully bridged," it says.
But a senior Southeast Asian official involved in the preparatory meetings for the Sydney summit said the statement lacked punch because it does not give concrete commitments that can break the impasse.
Meanwhile, a World Bank report published today said: Bribes and hidden trade barriers are costing APEC member states at least 148 billion US dollars in lost economic activity.
The report, released for an APEC summit in Sydney, said companies badly needed more transparent and predictable trade rules to reduce the uncertainty of trading in the 21-member group.
Studies showed that improving transparency would save at least 148 billion dollars, equivalent to 7.5 per cent of APEC's trade in 2004.
The report is important because of the sheer size of APEC, whose economies account for 56 per cent of world gross domestic product and nearly half global trade.
The World Bank said APEC economies generally had a good record on reducing regular trade barriers such as tariffs but called for more action to address "hidden" barriers and "unofficial payments" or bribes.
It said companies may need to pay bribes to customs agents to ease import and export transactions, adding to the cost of doing business.
"Regular traders may need to engage in such negotiations repeatedly, with a variety of different personnel," the report said.
"The outcome of the negotiations, whether or not a bribe is required and its amount, may differ in each case, thereby leading to unpredictability for private actors (companies) as to the level of effective costs they will face."
It said there were also hidden trade barriers, separate from the formal network of tariffs and quotas, that added to the costs of doing business.
"In many economies, the flow of goods and services remains hindered by complicated customs regulations, insufficient use of modern technology in customs, the lack of handling and transportation infrastructure, or by other shortcomings," it said.
Hailing upcoming negotiations in Geneva as an "unparalleled" opportunity to make progress, the Asia-Pacific Economic Cooperation forum (APEC) will make a last-ditch appeal to sparring trade nations.
The appeal comes with key negotiators due to gather for intensive discussions this week in Geneva aimed at sealing an agreement that would save the Doha round of World Trade Organisation (WTO) talks on breaking down global trade barriers.
"We all realise that the stakes are high. Time is running out," said David Spencer, Australia's ambassador to APEC.
The 21-state Pacific rim group, which includes China, Japan and the United States, accounts for nearly 50 per cent of world trade and 56 per cent of global gross domestic product.
In the draft statement the leaders "pledge to push hard for the progress necessary to ensure the Doha round negotiations enter their final phase this year."
"There has never been a more urgent need to make progress," they will say.
"The negotiations offer unparalleled potential to lower barriers to trade and to create a freer, fairer and more secure global market in which we can all compete.
"We insist that consensus will only be possible on the basis of an ambitious, balanced result that delivers substantial, real market access for agricultural and industrial goods and for services, as well as reductions in trade-distorting agricultural subsidies."
The statement holds out hope that the Doha talks could still succeed.
"The negotiations are undeniably difficult and complex. But real progress has already been made in many areas and it is our firm view that the remaining differences can be successfully bridged," it says.
But a senior Southeast Asian official involved in the preparatory meetings for the Sydney summit said the statement lacked punch because it does not give concrete commitments that can break the impasse.
Meanwhile, a World Bank report published today said: Bribes and hidden trade barriers are costing APEC member states at least 148 billion US dollars in lost economic activity.
The report, released for an APEC summit in Sydney, said companies badly needed more transparent and predictable trade rules to reduce the uncertainty of trading in the 21-member group.
Studies showed that improving transparency would save at least 148 billion dollars, equivalent to 7.5 per cent of APEC's trade in 2004.
The report is important because of the sheer size of APEC, whose economies account for 56 per cent of world gross domestic product and nearly half global trade.
The World Bank said APEC economies generally had a good record on reducing regular trade barriers such as tariffs but called for more action to address "hidden" barriers and "unofficial payments" or bribes.
It said companies may need to pay bribes to customs agents to ease import and export transactions, adding to the cost of doing business.
"Regular traders may need to engage in such negotiations repeatedly, with a variety of different personnel," the report said.
"The outcome of the negotiations, whether or not a bribe is required and its amount, may differ in each case, thereby leading to unpredictability for private actors (companies) as to the level of effective costs they will face."
It said there were also hidden trade barriers, separate from the formal network of tariffs and quotas, that added to the costs of doing business.
"In many economies, the flow of goods and services remains hindered by complicated customs regulations, insufficient use of modern technology in customs, the lack of handling and transportation infrastructure, or by other shortcomings," it said.