Asia-Pacific nations put pressure on WTO meet
Sunday, 23 November 2008
LIMA, Nov 22 (AFP): Asia-Pacific economies are stepping up pressure on an upcoming meeting in Geneva to break the deadlock in global trade talks as financial turmoil blunts economic growth.
Senior officials from key members of the World Trade Organisation (WTO) are set to meet today in the Swiss city in hopes of meeting a goal of clearing a key hurdle by the end of the year.
The meeting comes as leaders of 21 economies of the Asia-Pacific Economic Cooperation (APEC) gather in Peru where they are pressing for WTO action.
"Against the background of those political statements and against the background of the international economic turmoil, a failure to follow through in Geneva and deliver the results we need would represent nothing short of political failure," said newly elected New Zealand Prime Minister John Key.
World trade ministers last met in Geneva in July aiming to revive global trade talks launched in the Qatari capital Doha in November 2001. But the meeting collapsed as the United States and India clashed over measures to protect poor farmers against import surges.
WTO chief Pascal Lamy has not set a date for a ministerial meeting but negotiators expect him to call for December talks to reach agreement on the formulas for tariff and subsidy cuts for agriculture and industrial goods.
"We all agree that first of all we will be sending our senior officials to Geneva-some of them travelling straight from this Peruvian capital at the weekend-to begin talks immediately," said Indonesian Trade Minister Mari Pangestu.
"We call our counterparts to also send their officials to Geneva for talks to achieve a critical mass to begin what needs to be done-preparatory work for ministers to resume negotiations hopefully sometime in December," she said.
The need to resume talks gained urgency in recent weeks as financial turmoil plunged most developed nations such as the United States, Japan and those in Europe in or near recession and scaled back economic growth in developing nations such as China and India.
The leaders of the Group of Twenty (G20) developing and industrialised nations made a strong call last week in Washington for a breakthrough on the "modalities" to revive global trade talks.
US President George W Bush, Chinese President Hu Jintao and other APEC leaders, whose economies make up half of global trade, are expected to endorse the G20 statement and make a strong push to jumpstart the Doha round.
The APEC trade and foreign ministers at the end of their two-day talks Thursday urged nations outside the Asia-Pacific region "to show flexibility and make contributions toward an ambitious and balanced outcome, and we will do the same.
"We believe this is more urgent in light of the global financial crisis," they said in a joint statement.
The United States, a key player in the trade talks, indicated it was prepared to attend another round of ministerial talks if countries such as India were willing to compromise.
"If we are to have a modalities agreement among ministers by the end of this year, work in Geneva-and I mean serious engagement with the countries moving away from positions that they were locked themselves into in July-needs to progress very rapidly," said Susan Schwab, the US Trade Representative.
Leaders of developing countries attending the APEC talks here are meanwhile worried that failure to make a breakthrough on the Doha round could worsen global economic turmoil.
"Many WTO members are concerned that if no agreement was reached after its last failure in July, it may have an even worse impact on the global economy," Malaysian Trade Minister Muhyiddin Yassin said.
Senior officials from key members of the World Trade Organisation (WTO) are set to meet today in the Swiss city in hopes of meeting a goal of clearing a key hurdle by the end of the year.
The meeting comes as leaders of 21 economies of the Asia-Pacific Economic Cooperation (APEC) gather in Peru where they are pressing for WTO action.
"Against the background of those political statements and against the background of the international economic turmoil, a failure to follow through in Geneva and deliver the results we need would represent nothing short of political failure," said newly elected New Zealand Prime Minister John Key.
World trade ministers last met in Geneva in July aiming to revive global trade talks launched in the Qatari capital Doha in November 2001. But the meeting collapsed as the United States and India clashed over measures to protect poor farmers against import surges.
WTO chief Pascal Lamy has not set a date for a ministerial meeting but negotiators expect him to call for December talks to reach agreement on the formulas for tariff and subsidy cuts for agriculture and industrial goods.
"We all agree that first of all we will be sending our senior officials to Geneva-some of them travelling straight from this Peruvian capital at the weekend-to begin talks immediately," said Indonesian Trade Minister Mari Pangestu.
"We call our counterparts to also send their officials to Geneva for talks to achieve a critical mass to begin what needs to be done-preparatory work for ministers to resume negotiations hopefully sometime in December," she said.
The need to resume talks gained urgency in recent weeks as financial turmoil plunged most developed nations such as the United States, Japan and those in Europe in or near recession and scaled back economic growth in developing nations such as China and India.
The leaders of the Group of Twenty (G20) developing and industrialised nations made a strong call last week in Washington for a breakthrough on the "modalities" to revive global trade talks.
US President George W Bush, Chinese President Hu Jintao and other APEC leaders, whose economies make up half of global trade, are expected to endorse the G20 statement and make a strong push to jumpstart the Doha round.
The APEC trade and foreign ministers at the end of their two-day talks Thursday urged nations outside the Asia-Pacific region "to show flexibility and make contributions toward an ambitious and balanced outcome, and we will do the same.
"We believe this is more urgent in light of the global financial crisis," they said in a joint statement.
The United States, a key player in the trade talks, indicated it was prepared to attend another round of ministerial talks if countries such as India were willing to compromise.
"If we are to have a modalities agreement among ministers by the end of this year, work in Geneva-and I mean serious engagement with the countries moving away from positions that they were locked themselves into in July-needs to progress very rapidly," said Susan Schwab, the US Trade Representative.
Leaders of developing countries attending the APEC talks here are meanwhile worried that failure to make a breakthrough on the Doha round could worsen global economic turmoil.
"Many WTO members are concerned that if no agreement was reached after its last failure in July, it may have an even worse impact on the global economy," Malaysian Trade Minister Muhyiddin Yassin said.