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WTO trade crawl forward, held down by industrial products
Posted: 24 July 2008 1832 hrs

 
 
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GENEVA: Crucial WTO trade talks inched forward in overnight talks but rich and poor countries now face a race against time to resolve their differences the seven-year round.

Negotiators say talks on the industrial products sector were slowing progress, and many issues remained unresolved.

Argentine negotiator Nestor Stancanelli said before heading into Thursday's talks that "big differences" remained, particularly in industrial products.

While the draft text for discussion on agriculture reflected key concerns of most countries, that of the industrial products "failed to take in considerations of many countries", he explained.

The so-called "G6+1" group of the United States, European Union, Japan, India, Brazil, Australia and China were in locked in marathon talks last night until shortly before 4 am this morning.

But little was resolved.

"There is progress but not enough," said India's Trade Minister Kamal Nath after the talks.

"We are making progress on sensitive products, (tariff) capping, many issues, but there is still some heavy lifting to be done," he told reporters.

The "G6+1" talks were convened by WTO head Pascal Lamy on Wednesday after he warned members that progress had only been modest since talks began Monday.

Emerging and developed countries have slipped into a familiar pattern of demanding new moves from each other, with the success of this week's high-profile gathering hinging on whether they can find common ground.

The round began in the Qatari capital Doha seven years ago with the aim of helping poor countries take advantage of the freer global flow of goods and services, but has since been delayed by as developed and developing nations refused to give ground over subsidies and tariffs for farm and industrial products.

The European Union's chief negotiator Peter Mandelson said he was slightly more positive in some respects after the overnight meeting.

"After a great deal of very hard work some issues are nearer a solution, other issues are clearer and better understood but there is some way to go before the gaps are bridged," Mandelson said.

"I believe that this is a moving picture and we've still got a lot of frames to travel through but I believe we shall get to the end," he added.

Both the US and EU have made opening gambits by offering to reduce trade-distorting assistance to their farmers and they are now waiting for steps by developing nations to open their markets for industrial products.

On Tuesday, Washington offered to cut its official aid ceiling for its farmers to 15 billion US dollars a year -- a move greeted by Nath as welcome, but still inadequate.

"The first thing we must appreciate is that the US is moving," Nath said. "Up to now there was no movement. The fact movement has started is a good sign."

Nath gave no indication he would give ground on industrial products but said he would make a "good offer on services" -- the final component of the talks.

His failure to demonstrate flexibility on industrial products led a spokesman for the US trade delegation, Gretchen Hamel, to question if he was "reading from old talking points."

She added: "If the emerging markets don't contribute it will not be truly be a development round."

Speaking in Brasilia late on Wednesday, Brazilian President Luiz Inacio Lula da Silva said the talks would fail unless the United States and Europe made greater concessions.

"If there is no effective reduction in subsidies in the United States, and if there is no flexibilisation of the agriculture market by the Europeans, there will be no deal," he told reporters.

In that case, "each one will have to assume his responsibilities, and each one will have to reap what he sows," he said.

- AFP/jk

 

 



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