EU and US Target Developing Countries

From AFP

The United States and European Union took aim at emerging economies at crucial WTO trade talks on Monday, warning them to open up their markets if the seven-year Doha Round is to succeed.
EU Trade Commissioner Peter Mandelson even implied an ultimatum, saying he had gone out on a limb on agriculture and stressing that agreement was now conditional on developing countries making "real" cuts in industrial tariffs.
Mandelson, who is under strong political pressure, notably from France, to harden his stance on industrial issues, said: "They must be real. These cuts must provide some new market access in practice.
"That is the political bottom line. Nothing else will work for us. Nothing else will close the deal."
The EU revealed it was prepared to go even further than hitherto on farm issues, offering to extend proposed cuts in its tariffs on farm produce to 60 percent from 54 percent.
Earlier, Mandelson had said Europe was prepared to make "painful" cuts in its payments to farmers but only if it received guarantees of progress on other topics such as industrial tariffs and services.
"We are prepared to offer more than others in this round, but everyone must understand that we need something in return," he said.
The EUs, offers, he warned "will not remain on the table indefinitely."
Ministers from 35 key nations began critical talks under the aegis of the World Trade Organization here on Monday after seven years of confrontation and crisis.
US Trade Representative Susan Schwab called on emerging markets to play their part in the process.
She highlighted the "fundamentally critical role" of the emerging markets to the Round, noting that much of the developing world itself did not have access to the rapidly emerging markets.
"Seventy percent of the tariffs paid by developing countries are paid by other developing countries, they aren't paid by developed countries," she said.
The United States was prepared to make a contribution in return for contributions from emerging countries.
The "vast overwhelming contribution" had to come through market liberalisation rather than subsidy cuts.
The so-called Doha Development Round of negotiations was launched with great fanfare in the Qatari capital in November 2001.
It has been deadlocked as developed and developing countries show brinkmanship over concessions on issues such as agricultural subsidies and tariffs on industrial goods.
Any draft agreement thrashed out here would then have to go before all 152 members of the World Trade Organization.
An already difficult situation was not helped over the weekend when a remark by a Brazilian minister, comparing the tactics of advanced countries to the methods of the Nazi propaganda chief Joseph Goebbels, sparked a row with Washington's representative.
Celso made his contentious comment at a news conference on Saturday in response to claims by the industrialised countries that they had offered concessions on agricultural tariffs.
He said those claims reminded him of a remark by Nazi propaganda chief Joseph Goebbels that "if a lie is repeated enough times, it becomes the truth."
On Monday, Schwab declined to respond further.
She said there was a "sense of anticipation, a sense of momentum and a great desire to see a successful conclusion" to the Round. Egyptian Trade and Industry Minister Rachid Mohamed Rachid also expressed optimism "because people expect nothing out of this week -- because when expectation is so low, people are becoming more relaxed to negotiate."
Developing countries have been pressing for lower farm subsidies and agricultural tariffs in the developed world.
Industrialised states are demanding in return that developing countries make their markets more accessible to imported services and manufactured goods.
WTO Director General Pascal Lamy of France argues a Doha deal could inject between 50 billion and 100 billion dollars each year into the world economy and be of enormous benefit to poor countries.
For the meeting to be a success, the WTO's 152 members will have to agree on "modalities" -- the key percentages for tariff cuts that would form the basis for any comprehensive deal.
The Geneva talks have added urgency because all sides know that the United States will have a new administration and a new Congress next year.