At our informal meeting yesterday, I reported on the events of the last few days. That report will be put on the record of this meeting, and I will not repeat it but just highlight a few points.
There is no escaping the fact that the intensive efforts the whole membership has been putting in over the last days with the aim of establishing modalities in Agriculture and NAMA have failed.
Members have been unable to bridge their differences despite more than a week of hard work.Much has been achieved this week. We were very close to finalizing modalities in Agriculture and NAMA. A very few issues, which had not been there, led us not to establish modalities, but a huge amount of problems which had remained intractable for years have found solutions. Negotiators have been prepared to reach out beyond their entrenched positions and seek compromise, which they did. However, as I explained in detail in my statement yesterday, we were not able to find convergence in the area of the Special Safeguard Mechanism. And we did not even get around to discussing Cotton.As a result we have not been able to establish the Agriculture and NAMA modalities this week.
Yesterday, I outlined what this could cost the membership. I am sure you have all done the analysis for yourselves. I trust that Members will resolve together not to lose these benefits, even if it takes longer.You all know the value of what is on the table, not only in Agriculture and NAMA, but across the whole range of the agenda, whether in Services, the fastest growing and most dynamic sector in most economies, or in Trade Facilitation, just to take two examples.
Over the past few weeks, the Chairs of the Negotiating Groups have circulated reports on the state of play in their respective areas including reflections on the way forward. The Agriculture and NAMA Chairs will also shortly be circulating reports capturing the work of the last few days. We are working on this.Overall, the Chairs reports underline the breadth and depth of the progress we have made right across the Single Undertaking. The reports also show the wide and deep range of benefits that this Round can provide — two to three times more than any previous multilateral negotiation, and I have not changed my number on that. My own sense is that we need to build on this, and your own sense of whether you believe we need to build on this is the determining factor.
We can also clearly see progress in other areas, such as the Dispute Settlement negotiations and S&D. Good work has also been accomplished over the past few days in the area of TRIPS thanks to the very good process which Jonas Støre led and the constructive spirit of delegations.
I would also like to highlight the Services Signalling Conference which was held on 26 July. My report on this Conference will be circulated later today.
I think we all now need to engage in serious reflection on the next steps in our collective endeavour which is the Doha Development Agenda. I believe we have a collective responsibility to begin this process of reflection right now.Perhaps the dust needs to settle a bit before we can have a clear idea of those next steps. But my view is that the progress we have made in Agriculture and NAMA and in all the other Groups should be preserved. This represents thousands of hours of negotiation and serious poltical investment by all the Members of the WTO. This should not be wasted. All Members need now to seriously reflect about if and when we can jump the obstacle of what was not possible this week. Where there has been deadlock, we must find new ideas and new solutions.Our immediate priority is to reaffirm our commitment to the multilateral trading system which comes out of this week dented. All Ministers present here over the last 10 days have underlined how vital this system is, in terms not just of trade, but also of the stability of the international system. The task then, after the necessary reflection, is to translate words into deeds. The comeback should begin today. I would like to encourage you in your interventions not to dwell upon failure, which is a reality and which needs to be acknowledged, but to look forward to how we can do better next time. And I am convinced that there will be a next time, which is why I said yesterday that I was not throwing in the towel.
Finally, I thank you all for your hard work and cooperation. I would like to pay tribute to the many hours of work of the Chairs of the negotiating groups, and in particular Crawford, Don and Bruce as well as Jonas Støre. A final word for the staff in the Secretariat, including my office, who have put countless hours of work in helping you in your negotiating endeavour.The floor is open for your comments.
If any of you wish to have your statement posted on the WTO website, please send it electronically to the Information and Media Relations Division.
Wednesday, July 30, 2008
Tuesday, July 29, 2008
Talks Collapse
So near but so far.
Thank you India and China and the nine neanderthals within the EU.
This from the International Herald Tribune
A high-level summit meeting to salvage a global trade pact collapsed Tuesday after the United States, China and India failed to compromise on farm import rules, according to trade officials.
Trade diplomats, who were not authorized to speak publicly, said that the meeting of seven commercial powers collapsed here at the World Trade Organization's headquarters.
Officials, two from advanced economies and one from a developing nation, told The Associated Press that a U.S. dispute with China and India over farm import safeguards had effectively ended any hope of a breakthrough. The comments were confirmed by a European official, who was also not authorized to comment publicly.
They said that the WTO chief, Pascal Lamy, had informed ministers that an agreement could not be reached after more than a week of talks.
There was no immediate word on whether the participants would seek to meet again in 2008 to try to salvage the talks.
The United States accused India and China of seeking to backtrack on an agreement in principle made Friday. Washington accused the two emerging powers of insisting on allowances to raise farm tariffs above even their current levels.
India denied that it ever approved the previous text.
On Tuesday, ministers considered a new compromise proposal on the issue, brokered largely by the European negotiators, at what has now become the longest-ever ministerial meeting of the World Trade Organization.
"The general feeling is disbelief that this could go down over special safeguard measures," one official close to the negotiations, who was not authorized to speak publicly, said before the collapse. "It risks becoming a totemic issue: subsistence farming versus commodity exports."
Politically, any deal would have been difficult to sell in India.
The main complication, said another diplomat who was also not authorized to speak publicly, is that the Indian negotiator, Kamal Nath, comes from "an electoral region that is completely opposed to the idea of a deal."
At present, India does not have a safeguard mechanism for its farmers, though developed countries can invoke special measures to protect some of their goods if imports climb sharply.
Thank you India and China and the nine neanderthals within the EU.
This from the International Herald Tribune
A high-level summit meeting to salvage a global trade pact collapsed Tuesday after the United States, China and India failed to compromise on farm import rules, according to trade officials.
Trade diplomats, who were not authorized to speak publicly, said that the meeting of seven commercial powers collapsed here at the World Trade Organization's headquarters.
Officials, two from advanced economies and one from a developing nation, told The Associated Press that a U.S. dispute with China and India over farm import safeguards had effectively ended any hope of a breakthrough. The comments were confirmed by a European official, who was also not authorized to comment publicly.
They said that the WTO chief, Pascal Lamy, had informed ministers that an agreement could not be reached after more than a week of talks.
There was no immediate word on whether the participants would seek to meet again in 2008 to try to salvage the talks.
The United States accused India and China of seeking to backtrack on an agreement in principle made Friday. Washington accused the two emerging powers of insisting on allowances to raise farm tariffs above even their current levels.
India denied that it ever approved the previous text.
On Tuesday, ministers considered a new compromise proposal on the issue, brokered largely by the European negotiators, at what has now become the longest-ever ministerial meeting of the World Trade Organization.
"The general feeling is disbelief that this could go down over special safeguard measures," one official close to the negotiations, who was not authorized to speak publicly, said before the collapse. "It risks becoming a totemic issue: subsistence farming versus commodity exports."
Politically, any deal would have been difficult to sell in India.
The main complication, said another diplomat who was also not authorized to speak publicly, is that the Indian negotiator, Kamal Nath, comes from "an electoral region that is completely opposed to the idea of a deal."
At present, India does not have a safeguard mechanism for its farmers, though developed countries can invoke special measures to protect some of their goods if imports climb sharply.
Is It Always darkest Before The Dawn?
It seems pretty bleak around the WTO membership as we wake up this morning.
Another deadline for new texts has been broken. India stays apart from the package solution and now China seems even more firmly at their side.
Lets hope the key players had a very good sleep and that they have woken up with new ideas - otherwise these talks could die today.
We think that the US and EU should show true leadership and accept the Chinese and Indian positions - lets see what happens then. Will India and China find new issues on which to disagree? Or are the issues in dispute genuine "red lines"?
We are concerned about the extent that personalities have come to dominate these negotiations - both at officials level and at Ministerial level. Next time around it will be important to ensure, somehow that the negotiations are de-personalized.
Another deadline for new texts has been broken. India stays apart from the package solution and now China seems even more firmly at their side.
Lets hope the key players had a very good sleep and that they have woken up with new ideas - otherwise these talks could die today.
We think that the US and EU should show true leadership and accept the Chinese and Indian positions - lets see what happens then. Will India and China find new issues on which to disagree? Or are the issues in dispute genuine "red lines"?
We are concerned about the extent that personalities have come to dominate these negotiations - both at officials level and at Ministerial level. Next time around it will be important to ensure, somehow that the negotiations are de-personalized.
Negotiators Burn Midnight Oil As Anothe Deadline Passes
It is now 0040 on Tuesday morning in Geneva and we are about to call it a day.
Talks continue at small group level - G7 (G6 plus China).
There seems to have been no progress yet. China and India are standing firm as are the US and EU.
This Bloomberg report summarises the issues on the table. Unfortunately this impass is standing in the way of the new texts on agriculture and Nama that were due out yesterday. Will Ministers just run out of time at this Ministerial - already some are leaving?
World Trade Organization talks may collapse because India and China have refused to support a compromise deal worked out in the last few days, the U.S. said.
``There is a real threat to the delicate balance that we achieved on Friday night and I'm very concerned that it will jeopardize the outcome of this round,'' U.S. Trade Representative Susan Schwab told journalists in Geneva today. ``There's a real risk because those countries are advocating selectively reopening the package.''
The current negotiations mark the last chance to strike a deal on cutting tariffs and subsidies in agriculture and manufactured goods before the U.S. presidential election in November. Failure to lock up an accord may delay the Doha Round of talks for years because of changes in the U.S. administration and at the European Commission.
WTO chief Pascal Lamy told delegates earlier today that negotiators had made ``very important progress'' since talks on an accord in agriculture and industrial goods began eight days ago. ``There is now a very high level of convergence on many subjects,'' he said, adding that he expected to release new proposals later in the day aimed at liberalizing trade in farm and industrial products. That's no longer likely to happen today.
`Backtracking'
India and China refuse to accept key elements of a compromise put forth by Lamy three days ago and refined by ministers over the weekend, according to the U.S. India never endorsed the proposal and China is now ``backtracking'' in its support, Schwab said.
The key sticking point for India is the threshold for special safeguard measures, which allow developing countries to boost their agriculture tariffs to shield domestic farmers in case of a surge in imports. The proposed mechanism permits duties to rise when imports climb over 40 percent -- a level India says is too high to protect its farmers.
India wants the trigger set at 10 percent, a position supported by 100 developing nations that are concerned about the future of their farming industries in light of rising food prices, according to Commerce Minister Kamal Nath.
Still, India says it's not trying to torpedo the talks. ``We are continuing with these discussions and I'm still optimistic,'' Nath told journalists.
China dismissed the U.S. criticism, saying it's made concessions that demonstrate its commitment to a global trade deal and willingness to compromise.
U.S. Rigidity
``We have tried very hard to contribute to the success of the round,'' WTO Ambassador Sun Zhenyu said. It's U.S. rigidity in areas such as sensitive products and trade-distorting farm subsidies that is impeding the talks, he said.
Optimism had grown about the prospects for an accord since governments accepted Lamy's proposals as the basis for further talks. Trade ministers returned yesterday to thorny issues in the areas of agriculture and manufactured goods following a one-day shift to service-industry disputes, a priority for wealthy economies such as the U.S. and the European Union.
WTO talks have moved in fits and starts since beginning in November 2001 as industrialized and emerging markets clashed over how open up trade. Lamy has estimated that a deal would add as much as $100 billion to the global economy at a time when slowing growth and soaring food and fuel prices are undercutting living standards around the world.
Talks continue at small group level - G7 (G6 plus China).
There seems to have been no progress yet. China and India are standing firm as are the US and EU.
This Bloomberg report summarises the issues on the table. Unfortunately this impass is standing in the way of the new texts on agriculture and Nama that were due out yesterday. Will Ministers just run out of time at this Ministerial - already some are leaving?
World Trade Organization talks may collapse because India and China have refused to support a compromise deal worked out in the last few days, the U.S. said.
``There is a real threat to the delicate balance that we achieved on Friday night and I'm very concerned that it will jeopardize the outcome of this round,'' U.S. Trade Representative Susan Schwab told journalists in Geneva today. ``There's a real risk because those countries are advocating selectively reopening the package.''
The current negotiations mark the last chance to strike a deal on cutting tariffs and subsidies in agriculture and manufactured goods before the U.S. presidential election in November. Failure to lock up an accord may delay the Doha Round of talks for years because of changes in the U.S. administration and at the European Commission.
WTO chief Pascal Lamy told delegates earlier today that negotiators had made ``very important progress'' since talks on an accord in agriculture and industrial goods began eight days ago. ``There is now a very high level of convergence on many subjects,'' he said, adding that he expected to release new proposals later in the day aimed at liberalizing trade in farm and industrial products. That's no longer likely to happen today.
`Backtracking'
India and China refuse to accept key elements of a compromise put forth by Lamy three days ago and refined by ministers over the weekend, according to the U.S. India never endorsed the proposal and China is now ``backtracking'' in its support, Schwab said.
The key sticking point for India is the threshold for special safeguard measures, which allow developing countries to boost their agriculture tariffs to shield domestic farmers in case of a surge in imports. The proposed mechanism permits duties to rise when imports climb over 40 percent -- a level India says is too high to protect its farmers.
India wants the trigger set at 10 percent, a position supported by 100 developing nations that are concerned about the future of their farming industries in light of rising food prices, according to Commerce Minister Kamal Nath.
Still, India says it's not trying to torpedo the talks. ``We are continuing with these discussions and I'm still optimistic,'' Nath told journalists.
China dismissed the U.S. criticism, saying it's made concessions that demonstrate its commitment to a global trade deal and willingness to compromise.
U.S. Rigidity
``We have tried very hard to contribute to the success of the round,'' WTO Ambassador Sun Zhenyu said. It's U.S. rigidity in areas such as sensitive products and trade-distorting farm subsidies that is impeding the talks, he said.
Optimism had grown about the prospects for an accord since governments accepted Lamy's proposals as the basis for further talks. Trade ministers returned yesterday to thorny issues in the areas of agriculture and manufactured goods following a one-day shift to service-industry disputes, a priority for wealthy economies such as the U.S. and the European Union.
WTO talks have moved in fits and starts since beginning in November 2001 as industrialized and emerging markets clashed over how open up trade. Lamy has estimated that a deal would add as much as $100 billion to the global economy at a time when slowing growth and soaring food and fuel prices are undercutting living standards around the world.
Monday, July 28, 2008
France Remains A Headache For Mandelson
Reports from various US capitals are suggesting that the EU Trade Commissioner Peter Mandelson is facing continuing difficulties in maintaining EU unity. This report is from India
French President Nicolas Sarkozy has complained to European Commission head Jose Manuel Barroso about a proposed deal on offer at crucial WTO talks here, a diplomatic source said on Monday. Sarkozy called Barroso over the weekend and also demanded that the EU's chief trade negotiator Peter Mandelson travel to Paris to explain his position -- a demand that was refused, the source said. France currently holds the rotating presidency of the European Union. The French government said on Monday it would not sign proposals for a trade pact as they stand because they show no progress on "essential" matters. "Today, the cabinet considers that the project currently on the table is not acceptable as it stands, to the extent that it shows no advance on elements which are altogether essential in our eyes," French government spokesman Luc Chatel said after a cabinet meeting. He mentioned "the protection of indications of geographical origin", in a reference to such issues as the labelling of wine, and "the defence of our European industrial interests in the face of emerging countries". Mandelson is negotiating at the mammoth talks here in Geneva on behalf of all 27 members of the European Union, but the former British cabinet minister is viewed with suspicion in Paris as a so-called "neo-liberal" who would be willing to sacrifice France's hefty agricultural sector for the sake of a deal.
French President Nicolas Sarkozy has complained to European Commission head Jose Manuel Barroso about a proposed deal on offer at crucial WTO talks here, a diplomatic source said on Monday. Sarkozy called Barroso over the weekend and also demanded that the EU's chief trade negotiator Peter Mandelson travel to Paris to explain his position -- a demand that was refused, the source said. France currently holds the rotating presidency of the European Union. The French government said on Monday it would not sign proposals for a trade pact as they stand because they show no progress on "essential" matters. "Today, the cabinet considers that the project currently on the table is not acceptable as it stands, to the extent that it shows no advance on elements which are altogether essential in our eyes," French government spokesman Luc Chatel said after a cabinet meeting. He mentioned "the protection of indications of geographical origin", in a reference to such issues as the labelling of wine, and "the defence of our European industrial interests in the face of emerging countries". Mandelson is negotiating at the mammoth talks here in Geneva on behalf of all 27 members of the European Union, but the former British cabinet minister is viewed with suspicion in Paris as a so-called "neo-liberal" who would be willing to sacrifice France's hefty agricultural sector for the sake of a deal.
India And China Throwing WTO Round Into Gravest Jeopardy
Indian and Chinese attitudes to the Special Safeguard Mechanism on agriculture and Chinese attitudes to sectoral negotiations remain major sticking points in the ongoning Geneva negotiations.
AP are reporting senior USTR official David Shark's comments on agriculture
The United States slammed China and India on Monday, saying they were threatening seven years of work on a new global commerce pact and using some of the strongest language yet at a crucial set of talks at the World Trade Organization.
David Shark, a U.S. trade official, told the WTO's 153 members that the United States has "swallowed hard and accepted" a compromise proposal to open up trade in manufactured goods and agriculture.
But he criticized India for rejecting the package laid out by WTO chief Pascal Lamy, and China for backing out of terms it committed to last week.
"Their actions have thrown the entire Doha round into the gravest jeopardy of its nearly seven-year life," Shark said, according to a copy of his statement obtained by The Associated Press.
Shark said the two emerging powers are insisting on allowances to raise farm tariffs above even their current levels. That violates the spirit of the trade round, the U.S. and other agricultural exporters argue, because it is supposed to help poorer countries develop their economies by boosting their exports of farm produce.
But China and India are not alone. Faced with rising food prices, a number of developing nations have sought wide loopholes against opening up their farm markets — either by blocking certain strategic products such as rice or grains or through rules that would allow them to spike tariffs if faced with a sudden flood of imports.
Shark accused China of trying to carve out cotton, sugar, rice and other commodities from any tariff cuts under a WTO deal. He said Beijing and Delhi were working to protect their own interests by controlling a large group of even poorer nations.
"Ironically, these policies would have their most serious detrimental effects on precisely those poorer developing countries that already have such limited agricultural export capabilities," he said.
Cuba, Haiti, Indonesia, Philippines and Venezuela and are among over 30 WTO countries allied with India and China in WTO agriculture negotiations.
They, and other developing countries, have sought steeper cuts in rich-world farm subsidies, which they blame for distorting global commodities prices and hindering Third World development. The U.S. and the European Union have demanded new market opportunities for their industrial goods and service providers in exchange. Washington also wants better conditions for farm exports.
After nearly a week of fruitless talks, a compromise proposal on Friday by Lamy finally cajoled major countries into making tough decisions.
It called for cutting limits on European farm subsides by 80 percent and on U.S. payments by 70 percent. That, however, would not entail a reduction in overall spending for the U.S., which paid out only US$9 billion last year in trade-distorting support to American farmers but would still be allowed to increase that to about US$14.5 billion.
In goods trade, there were concessions for both rich and poor countries. Lamy's offer gave developing countries a choice for industrial tariff caps from 20 to 25 percent. The steeper the cuts developing countries chose, the more loopholes they receive to protect strategic industries such as automobiles.
While Brazil and China bit by tentatively accepting the compromise, India held firm. But diplomats from developing countries grumbled all weekend that Beijing's support was wavering.
Shark said unless China and India "immediately reverse course to become problem solvers rather than obstacles to the round, all of us will leave Geneva empty-handed."
AP are reporting senior USTR official David Shark's comments on agriculture
The United States slammed China and India on Monday, saying they were threatening seven years of work on a new global commerce pact and using some of the strongest language yet at a crucial set of talks at the World Trade Organization.
David Shark, a U.S. trade official, told the WTO's 153 members that the United States has "swallowed hard and accepted" a compromise proposal to open up trade in manufactured goods and agriculture.
But he criticized India for rejecting the package laid out by WTO chief Pascal Lamy, and China for backing out of terms it committed to last week.
"Their actions have thrown the entire Doha round into the gravest jeopardy of its nearly seven-year life," Shark said, according to a copy of his statement obtained by The Associated Press.
Shark said the two emerging powers are insisting on allowances to raise farm tariffs above even their current levels. That violates the spirit of the trade round, the U.S. and other agricultural exporters argue, because it is supposed to help poorer countries develop their economies by boosting their exports of farm produce.
But China and India are not alone. Faced with rising food prices, a number of developing nations have sought wide loopholes against opening up their farm markets — either by blocking certain strategic products such as rice or grains or through rules that would allow them to spike tariffs if faced with a sudden flood of imports.
Shark accused China of trying to carve out cotton, sugar, rice and other commodities from any tariff cuts under a WTO deal. He said Beijing and Delhi were working to protect their own interests by controlling a large group of even poorer nations.
"Ironically, these policies would have their most serious detrimental effects on precisely those poorer developing countries that already have such limited agricultural export capabilities," he said.
Cuba, Haiti, Indonesia, Philippines and Venezuela and are among over 30 WTO countries allied with India and China in WTO agriculture negotiations.
They, and other developing countries, have sought steeper cuts in rich-world farm subsidies, which they blame for distorting global commodities prices and hindering Third World development. The U.S. and the European Union have demanded new market opportunities for their industrial goods and service providers in exchange. Washington also wants better conditions for farm exports.
After nearly a week of fruitless talks, a compromise proposal on Friday by Lamy finally cajoled major countries into making tough decisions.
It called for cutting limits on European farm subsides by 80 percent and on U.S. payments by 70 percent. That, however, would not entail a reduction in overall spending for the U.S., which paid out only US$9 billion last year in trade-distorting support to American farmers but would still be allowed to increase that to about US$14.5 billion.
In goods trade, there were concessions for both rich and poor countries. Lamy's offer gave developing countries a choice for industrial tariff caps from 20 to 25 percent. The steeper the cuts developing countries chose, the more loopholes they receive to protect strategic industries such as automobiles.
While Brazil and China bit by tentatively accepting the compromise, India held firm. But diplomats from developing countries grumbled all weekend that Beijing's support was wavering.
Shark said unless China and India "immediately reverse course to become problem solvers rather than obstacles to the round, all of us will leave Geneva empty-handed."
World Trade Organization - Lamy urges members to accelerate movement towards compromises
LAMY URGES MEMBERS TO ACCELERATE MOVEMENT TOWARDS COMPROMISES
Director-General Pascal Lamy reported to an informal meeting of the Trade Negotiations Committee on 28 July 2008 that "we have registered very important progress...there is now a very high level of convergence on many subjects". He urged negotiators to accelerate movement towards compromises in the coming hours, adding that he aims to issue revised "modality" texts on agriculture and non-agricultural market access later in the day.
Talking points for the Director-General (coming soon): http://www.wto.org/english/news_e/news08_e/meet08_chair_28july08_e.htm: http://www.wto.org/audio/2008_07_28_tnc_opening.mp3
Audio: Opening remarks by Chair and report by Jonas Gahr Støre
Forces Of Darkness Fight Rear Guard Action
Sunday was meant to be a day of reflection, consolidation, and a day in which the Chairs could convert Friday's framework package into revised texts. Unfortunately India and others have been using the day to try and disrupt the integrity of the package. Most of these attempts have made it into the media.
It was not all bad news however, the long running banana issue seems to have been solved.
From our perspective, possibly the most serious problem now is China's position on NAMA sectorals.
The reaction to today's revised texts will be telling. We still see things as more positive than negative but this negotiation is so finely balanced it could blow apart on any issue. The beauty of Friday's position was thaat it was a package. It could not be changed. No one was entirely happy, but everyone gained more than they "lost".
It was not all bad news however, the long running banana issue seems to have been solved.
From our perspective, possibly the most serious problem now is China's position on NAMA sectorals.
The reaction to today's revised texts will be telling. We still see things as more positive than negative but this negotiation is so finely balanced it could blow apart on any issue. The beauty of Friday's position was thaat it was a package. It could not be changed. No one was entirely happy, but everyone gained more than they "lost".
Saturday, July 26, 2008
India A Real Problem
India continues to cause troubles at this Ministerial and is continuing to seek support from the G33. Argentina seems to be the only close ally of significance left. There is still scope to disrupt or kill this negotiation as many issues remain unresolved. But what is unclear is whether India is acting out of national interest or whether Indian Minister Nath is on a personal ego trip. Several Ministerial colleagues are suggesting the latter...
Services Signalling Conference Goes Well
Feedback from participants suggest that the Services Signalling Conference went as well as can be expected. The US signalled, as hoped for, a willingness to move further on mode 4 for services. This will make it even more difficult for India to walk away.
India And Argentina Still Causing Problems
The media are reporting continuing problems - with India in particular, at the WTO Ministerial. We hear the same but our sense is that India and Argentina have become so isolated that they don't have the will to force failure. We will wait and see. But this is why we have been suggesting leadership from the US on services. We can't give India the excuse to walk away.
A sense of optimism surrounded WTO negotiations on a new global free trade pact Saturday, but opposition from India and a handful of others could doom hopes of a breakthrough, insiders said. Ministers from 35 leading nations headed for meetings aiming to finally bridge their differences, with pressure piling on negotiators from India and Argentina which have signalled opposition to a deal. "This afternoon's session will be important. India will be looking to see what it can get out of the session to decide whether to ditch discussions," a diplomatic source told AFP on condition of anonymity.
A sense of optimism surrounded WTO negotiations on a new global free trade pact Saturday, but opposition from India and a handful of others could doom hopes of a breakthrough, insiders said. Ministers from 35 leading nations headed for meetings aiming to finally bridge their differences, with pressure piling on negotiators from India and Argentina which have signalled opposition to a deal. "This afternoon's session will be important. India will be looking to see what it can get out of the session to decide whether to ditch discussions," a diplomatic source told AFP on condition of anonymity.
What Has Been Happening This Week?
- There has been slow but steady progress at officials' level for some weeks;
- Bilateral meetings between Ministers last weekend also showed helpful signs;
- But Brazil and India didn't seem that willing to engage until the Indian confidence vote outcome was known and Nath returned to Geneva;
- India's initial reaction to the US domestic subsidy offer was too negative and had to be corrected by Nath, this helped unblock things;
- Serious negotiations began on Wednesday by the G6 plus China;
- India and Brazil gave enough ground on NAMA to allow the US to go further on agricultural subsidies;
- This has allowed the services signalling conference to proceed. The assumption is that the US will not want the talks to fall over at this stage so will signal what India needs to hear on mode four;
- But India and Brazil have enough issues up their sleeves as yet unresolved to stall things again if they don't get what they want on services;
- The four amigos will continue to try and disrupt on services but will they really have the authority to kill the entire negotiation - we think not;
- It can still go wrong but signs are positive. Today the US has to show leadership and signal a willingness to do something good one mode four (there should be no problem here. Implementation isn't going to be Bush's problem. It iwll be up to either Obama or McCain). And Mandelson needs to continue to stare down France and Ireland.
Friday, July 25, 2008
Good News From Green Room
Pretty much as we were hitting send on our last post the Green Room was breaking up with a positive outcome. Lamy's compromise package has held together (including $14.5 billion). All eyes will be on tomorrow's services signalling conference and what the US says on mode four.
Can The US Move A Further $0.5 billion? Yes
We understood at the start of the week that the US would table an offer to cap domestic subsidies at $15.5 billion and then come dow to $15 at the end of the week. Instead they started at $15 billion. This would suggest that the current proposal of a further $0.5 billion cut is possible. But will it be enough? If we knew this then India and Brazil would too. Will they be demanding more????
Full Greenroom Back In Session
Everyone is saying that things are more hopeful but a huge amount still needs to be done to forge a deal. The Services signalling conference is now scheduled for 2pm Saturday. The right signals from the US on Mode Four will be critical there also. Fingers crossed.
We Remain At Standoff
This Reuters report squares with everything we are hearing including the frustraation of business groups. This services crowd is one of the most active and linked in groups around, and one of the few actively seeking a positive outcome.
Marathon trade talks limped into another day on Friday but with little progress so far on the tortuous negotiations ministers said it would soon be time to decide whether a deal was at all possible.
The make-or-break talks, called this week to crack the deadlock in the World Trade Organisation's (WTO) long-running Doha round, have failed to move far in the intractable issues ranging from farm subsidies to car import duties.
Brazil's Foreign Minister Celso Amorim said after Thursday's meeting ended that the talks had not broken up so far, and there was interest in continuing, but time was running out.
"Tomorrow is the day in which we must know whether it's possible or not. Maybe we don't finish everything but you must have an idea whether it's possible or not," he told reporters.
U.S. Trade Representative Susan Schwab said that despite some progress the talks had not moved as much as Washington hoped when it offered on Tuesday to slash its farm subsidies.
"Let's put it this way: some countries are stretching more than others and we'll see tomorrow whether everybody is prepared to do their share," she told reporters.
BUSINESS OPPORTUNITIES
The United States and European Union want developing countries to open up their markets for industrial goods and services, and accuse them of trying to avoid real liberalisation that would create new business opportunities.
But big developing countries like Brazil and India say the rich nations are not doing enough to break down the tariff walls and subsidies that distort farm trade.
They point to the Doha round's development agenda to argue that poor countries should be able to shield subsistence farmers and infant industries from the full force of liberalisation.
Industry associations from Argentina, India and South Africa issued a joint statement warning that the current proposals in the talks risked damaging key sectors in their countries that were major providers of employment.
And a row about bananas that threatens to derail the entire negotiation continued to fester on Thursday despite talks among different groups of developing country producers.
WTO Director-General Pascal Lamy called ministers from about 35 countries to Geneva this week to seek a breakthrough in the Doha round, launched in late 2001 to boost the world economy, warning the negotiation could otherwise be delayed for years. He says a successful deal would inject confidence into a global economy beset by soaring fuel and food prices and the credit crunch, while failure would encourage protectionist sentiment and call into question the international community's ability to tackle problems like climate change.
This week's talks focus on the core areas of agriculture and industrial goods, but are also due to review the prospects for liberalisation in services like banking and telecoms.
The talks were originally due to run until Saturday but delegates say they are likely to either flop before then because of the deep differences or drag on into next week.
The Global Services Coalition, an international lobbying group, said that in nearly seven years ministers had not yet had a substantive joint discussion on services, which represent 50-80 percent of the economies of the WTO's 153 members.
"If the current talks in Geneva collapse without addressing services, it will be a deplorable failure to promote the best opportunities for global growth and employment," it said.
Marathon trade talks limped into another day on Friday but with little progress so far on the tortuous negotiations ministers said it would soon be time to decide whether a deal was at all possible.
The make-or-break talks, called this week to crack the deadlock in the World Trade Organisation's (WTO) long-running Doha round, have failed to move far in the intractable issues ranging from farm subsidies to car import duties.
Brazil's Foreign Minister Celso Amorim said after Thursday's meeting ended that the talks had not broken up so far, and there was interest in continuing, but time was running out.
"Tomorrow is the day in which we must know whether it's possible or not. Maybe we don't finish everything but you must have an idea whether it's possible or not," he told reporters.
U.S. Trade Representative Susan Schwab said that despite some progress the talks had not moved as much as Washington hoped when it offered on Tuesday to slash its farm subsidies.
"Let's put it this way: some countries are stretching more than others and we'll see tomorrow whether everybody is prepared to do their share," she told reporters.
BUSINESS OPPORTUNITIES
The United States and European Union want developing countries to open up their markets for industrial goods and services, and accuse them of trying to avoid real liberalisation that would create new business opportunities.
But big developing countries like Brazil and India say the rich nations are not doing enough to break down the tariff walls and subsidies that distort farm trade.
They point to the Doha round's development agenda to argue that poor countries should be able to shield subsistence farmers and infant industries from the full force of liberalisation.
Industry associations from Argentina, India and South Africa issued a joint statement warning that the current proposals in the talks risked damaging key sectors in their countries that were major providers of employment.
And a row about bananas that threatens to derail the entire negotiation continued to fester on Thursday despite talks among different groups of developing country producers.
WTO Director-General Pascal Lamy called ministers from about 35 countries to Geneva this week to seek a breakthrough in the Doha round, launched in late 2001 to boost the world economy, warning the negotiation could otherwise be delayed for years. He says a successful deal would inject confidence into a global economy beset by soaring fuel and food prices and the credit crunch, while failure would encourage protectionist sentiment and call into question the international community's ability to tackle problems like climate change.
This week's talks focus on the core areas of agriculture and industrial goods, but are also due to review the prospects for liberalisation in services like banking and telecoms.
The talks were originally due to run until Saturday but delegates say they are likely to either flop before then because of the deep differences or drag on into next week.
The Global Services Coalition, an international lobbying group, said that in nearly seven years ministers had not yet had a substantive joint discussion on services, which represent 50-80 percent of the economies of the WTO's 153 members.
"If the current talks in Geneva collapse without addressing services, it will be a deplorable failure to promote the best opportunities for global growth and employment," it said.
Thursday, July 24, 2008
Talks In Crisis And Now Sarkozy Gets Involved....
The next few hours are make or break.
Sarkozy's undermining of Mandelson is inexcusable and most unhelpful.
Progress in the G6 plus China is still too slow. Most money is on a breakdown tomorrow.
Sarkozy's undermining of Mandelson is inexcusable and most unhelpful.
Progress in the G6 plus China is still too slow. Most money is on a breakdown tomorrow.
Services Signalling Conference Put Off For Another Day
As a further sign of the crisis facing these talks the services signalling conference has been delayed again - this time to Saturday.
Yesterday's G6 (plus China) Meeting
Reuters report on yesterday's meetings
Urgent talks to salvage a global trade deal made "some progress" in the early hours of Thursday, ministers said, but officials warned the mood was dark behind closed doors at the World Trade Organisation.
The ministers from Australia, Brazil, China, the European Union, India, Japan and the United States attempted to address major stumbling blocks that have long dogged the WTO's Doha negotiations, launched in 2001.
"Collectively we think it's worth continuing to make an effort because there was some progress. There are difficulties too," Brazilian Foreign Minister Celso Amorim told reporters.
U.S. Trade Representative Susan Schwab said "a little progress" was made.
Ministers were due to meet again on Thursday afternoon.
"Some issues are nearer solution. Other issues are clearer and better understood. But there is some way to go before the gaps are bridged," European Trade Commissioner Peter Mandelson said as the talks ended shortly before 3:30 am (0130 GMT).
An official close to the talks said the atmosphere was "sombre" as rich and poor countries remained at odds over steps needed to break the deadlock.
In another sign of the heightened tensions, Brazilian President Luiz Inacio Lula da Silva warned the United States and the EU they were risking a failure of the round, a contrast to more positive comments he has made recently.
"With no effective reduction in U.S. farm subsidies nor an effective opening of the European farm market, there will be no deal and everyone will have to face their responsibilities," Lula was quoted as saying in Brazil by local media.
WTO Director-General Pascal Lamy called ministers from about 30 of the 153 WTO countries to Geneva this week for last-ditch talks on the Doha round which was once billed as a chance to boost the global economy but now risks running out of time.
TALKS TO RESUME
Lamy on Wednesday narrowed the group down further to the seven key rich and poor WTO powers.
They discussed six issues on agriculture and three on industrial goods ranging from cotton subsidies to measures to prevent developing nations from shielding entire sectors from import tariff cuts, WTO spokesman Keith Rockwell said.
Indian Commerce Minister Kamal Nath said progress was made on so-called sensitive products -- the complex yet crucial arrangements allowing countries to shield certain farm products from tariff cuts in exchange for admitting a low-duty quota.
Earlier on Wednesday, India said a U.S. offer made the previous day to bring down the cap on America's disputed trade-distorting farm subsidies to $15 billion a year represented movement but had to go deeper.
India was quickly criticised from Washington for not responding in kind to its farm offer.
"Now we need to see a reciprocal demonstration of ambition on new market access commitments from our major trading partners, including advanced developing countries like India, Brazil, Argentina and China," said Charles Grassley, a member of the U.S. Senate finance committee.
The exchange encapsulated the dilemma at the heart of the Doha talks. Developing countries want rich nations to open up their markets for farm goods and reduce agricultural subsidies that discourage their own farmers from growing food.
Rich countries accept they must move on agriculture, but want more access to developing country markets for industrial goods like cars and chemicals, or services like banking.
Urgent talks to salvage a global trade deal made "some progress" in the early hours of Thursday, ministers said, but officials warned the mood was dark behind closed doors at the World Trade Organisation.
The ministers from Australia, Brazil, China, the European Union, India, Japan and the United States attempted to address major stumbling blocks that have long dogged the WTO's Doha negotiations, launched in 2001.
"Collectively we think it's worth continuing to make an effort because there was some progress. There are difficulties too," Brazilian Foreign Minister Celso Amorim told reporters.
U.S. Trade Representative Susan Schwab said "a little progress" was made.
Ministers were due to meet again on Thursday afternoon.
"Some issues are nearer solution. Other issues are clearer and better understood. But there is some way to go before the gaps are bridged," European Trade Commissioner Peter Mandelson said as the talks ended shortly before 3:30 am (0130 GMT).
An official close to the talks said the atmosphere was "sombre" as rich and poor countries remained at odds over steps needed to break the deadlock.
In another sign of the heightened tensions, Brazilian President Luiz Inacio Lula da Silva warned the United States and the EU they were risking a failure of the round, a contrast to more positive comments he has made recently.
"With no effective reduction in U.S. farm subsidies nor an effective opening of the European farm market, there will be no deal and everyone will have to face their responsibilities," Lula was quoted as saying in Brazil by local media.
WTO Director-General Pascal Lamy called ministers from about 30 of the 153 WTO countries to Geneva this week for last-ditch talks on the Doha round which was once billed as a chance to boost the global economy but now risks running out of time.
TALKS TO RESUME
Lamy on Wednesday narrowed the group down further to the seven key rich and poor WTO powers.
They discussed six issues on agriculture and three on industrial goods ranging from cotton subsidies to measures to prevent developing nations from shielding entire sectors from import tariff cuts, WTO spokesman Keith Rockwell said.
Indian Commerce Minister Kamal Nath said progress was made on so-called sensitive products -- the complex yet crucial arrangements allowing countries to shield certain farm products from tariff cuts in exchange for admitting a low-duty quota.
Earlier on Wednesday, India said a U.S. offer made the previous day to bring down the cap on America's disputed trade-distorting farm subsidies to $15 billion a year represented movement but had to go deeper.
India was quickly criticised from Washington for not responding in kind to its farm offer.
"Now we need to see a reciprocal demonstration of ambition on new market access commitments from our major trading partners, including advanced developing countries like India, Brazil, Argentina and China," said Charles Grassley, a member of the U.S. Senate finance committee.
The exchange encapsulated the dilemma at the heart of the Doha talks. Developing countries want rich nations to open up their markets for farm goods and reduce agricultural subsidies that discourage their own farmers from growing food.
Rich countries accept they must move on agriculture, but want more access to developing country markets for industrial goods like cars and chemicals, or services like banking.
Chicken And Egg
Or maybe just chicken. Who will blink first? The US expects Brazil and India to signal concessions on NAMA before making bigger concessions on farm subsidies and services mode four. Brazil and India expect concessions from the US and EU. This is the dynamic at play here in Geneva. Things were looking extremely bad for a while yesterday but India's more conciliatory line on the US subsidy offer improved atmospherics a little.
Three Services Amigos Become Four
Nicaragua joined Venezuela, Bolivia and Cuba in rejecting the text being proposed by the services negotiating group chair. This came as a surprise and was another piece of bad news on a bleak day for the WTO. At the end of the day members doubt that these four will be able to hold up consensus on an overall outcome, but this development was particularly unhelpful given other developments.
Wednesday, July 23, 2008
Ministerial Green Room Went Badly
The Green Room process has been terminated for a day while delegations do more work on specific elements of the agriculture and NAMA texts. This small group process will report back to the Green Room on Thursday. At the end of the Green Room yesterday DG Lamy said that there were three choices to keep meeting for another 15 days, to ask the chairs to go away and rewrite their texts by dividing the differences in two and chosing the mid point, or they can adopt a small group process. Members agreed the small group process.
Services Signalling Conference Delayed Unil Friday
Late last night at the end of the Green Room DG Lamy announced a delay in the proposed signalling conference on services. The only comment was from India which noted that services are the single most important issue at this meeting. Without movement on services they cannot agree any changes in position on agriculture or NAMA.
US Remains Opposed To GI Extension
The US remains opposed to attempts to extend the register of geographic indications beyond wine and alcohol. This report from Reuters
The United States is resisting efforts at world trade talks to expand protections for geographical food names, such as Parma ham.
It is also objecting to attempts to require patent seekers to disclose the source of genetic resources or traditional knowledge used to make drugs.
About 100 members of the World Trade Organisation -- including the European Union and India -- are pushing for progress on the TRIPS (trade-related aspects of intellectual property rights) issues at a high-stakes meeting to bring the long-running Doha round to a close this year.
"These TRIPS issues are important to many members, but we think it's vital to keep the focus of this meeting on agriculture, (manufactured goods), services," said Gretchen Hamel, a spokeswoman for U.S. Trade Representative Susan Schwab.
"This meeting is not the time to create new mandates on the TRIPS issues."
The United States is participating in Doha round talks to create an international register for wine and alcohol names drawn from areas where they originated, such as the Champagne region in France.
But, with other nations such as Australia and Argentina, it sees the register as simply a database, and rejects EU proposals to give mandatory protection to entries on the register as cumbersome and impractical. And it opposes extending the register beyond wines and spirits.
"There is no mandate in Doha for GI (geographical indications) extension. We do not think that is a good idea and we are not currently engaged on that subject, nor do we intend to be," Schwab said at WTO headquarters on Tuesday.
The EU has abandoned efforts to "claw back" place names that have become generic in the new world, such as parmesan cheese, but still wants to protect them in third markets where they are not yet common parlance.
Meanwhile, many developing countries want to make sure they get a fair share of the benefits from drugs derived from their stock of genetic resources or traditional knowledge.
A group including Brazil, India and other countries in Latin America, Asia and Africa want to amend the WTO TRIPS agreement to require patent applicants to disclose the country of origin of genetic resources such as wild plants and traditional knowledge used in inventions and also show evidence they received "prior informed consent" before using the materials.
A third plank would require the patent holders to show evidence of a "fair and equitable" benefit sharing plan.
The National Foreign Trade Council, a U.S. business group whose members include leading drug manufacturer Pfizer (PFE.N: Quote, Profile, Research) and top food and beverage company Pepsi (PEP.N: Quote, Profile, Research), urged Schwab and EU Trade Commissioner Peter Mandelson in letters on Monday not to overload this week's meeting.
"In our view, both these issues are beyond the negotiating mandate of the Doha Round and have no place in the crucial discussions taking place in Geneva this week," the business group said.
"Negotiators should focus their attention on making substantive progress on the three pillars of the Doha Round -- agriculture, manufactured goods, and services -- and not be diverted by the introduction of new and controversial topics," the group added.
But Gopal Pillai, top civil servant at India's Commerce Ministry, told delegates on Tuesday it was impossible to ignore demands made by more than 100 WTO members.
"The political importance of these issues for the membership is to be recognised and it is essential that ministers provide clear instructions for intensive negotiations on the three issues as a part of the single undertaking" for completing the round, he said.
The United States is resisting efforts at world trade talks to expand protections for geographical food names, such as Parma ham.
It is also objecting to attempts to require patent seekers to disclose the source of genetic resources or traditional knowledge used to make drugs.
About 100 members of the World Trade Organisation -- including the European Union and India -- are pushing for progress on the TRIPS (trade-related aspects of intellectual property rights) issues at a high-stakes meeting to bring the long-running Doha round to a close this year.
"These TRIPS issues are important to many members, but we think it's vital to keep the focus of this meeting on agriculture, (manufactured goods), services," said Gretchen Hamel, a spokeswoman for U.S. Trade Representative Susan Schwab.
"This meeting is not the time to create new mandates on the TRIPS issues."
The United States is participating in Doha round talks to create an international register for wine and alcohol names drawn from areas where they originated, such as the Champagne region in France.
But, with other nations such as Australia and Argentina, it sees the register as simply a database, and rejects EU proposals to give mandatory protection to entries on the register as cumbersome and impractical. And it opposes extending the register beyond wines and spirits.
"There is no mandate in Doha for GI (geographical indications) extension. We do not think that is a good idea and we are not currently engaged on that subject, nor do we intend to be," Schwab said at WTO headquarters on Tuesday.
The EU has abandoned efforts to "claw back" place names that have become generic in the new world, such as parmesan cheese, but still wants to protect them in third markets where they are not yet common parlance.
Meanwhile, many developing countries want to make sure they get a fair share of the benefits from drugs derived from their stock of genetic resources or traditional knowledge.
A group including Brazil, India and other countries in Latin America, Asia and Africa want to amend the WTO TRIPS agreement to require patent applicants to disclose the country of origin of genetic resources such as wild plants and traditional knowledge used in inventions and also show evidence they received "prior informed consent" before using the materials.
A third plank would require the patent holders to show evidence of a "fair and equitable" benefit sharing plan.
The National Foreign Trade Council, a U.S. business group whose members include leading drug manufacturer Pfizer (PFE.N: Quote, Profile, Research) and top food and beverage company Pepsi (PEP.N: Quote, Profile, Research), urged Schwab and EU Trade Commissioner Peter Mandelson in letters on Monday not to overload this week's meeting.
"In our view, both these issues are beyond the negotiating mandate of the Doha Round and have no place in the crucial discussions taking place in Geneva this week," the business group said.
"Negotiators should focus their attention on making substantive progress on the three pillars of the Doha Round -- agriculture, manufactured goods, and services -- and not be diverted by the introduction of new and controversial topics," the group added.
But Gopal Pillai, top civil servant at India's Commerce Ministry, told delegates on Tuesday it was impossible to ignore demands made by more than 100 WTO members.
"The political importance of these issues for the membership is to be recognised and it is essential that ministers provide clear instructions for intensive negotiations on the three issues as a part of the single undertaking" for completing the round, he said.
Is Timing Right For Services Signalling Conference?
Services Industry advocates are worried that the Director-General has the timing for the services signalling conference wrong. This is supposed to be held tomorrow, but this would be ahead of revised texts on agriculture and NAMA being circulated. WTO Secretariat sources are telling industry groups that key developing countries are holding back on the quality of their pledges on liberalisation for important sectors until there has been some progress in the agriculture and NAMA negotiations. Signs of this progress are unlikely until Friday at the earliest. Assuming they don't break down first, it is clear that this negotiation is going to stretch until at least Tuesday of next week. Might Saturday not be a better day for the services signalling conference some ask?
Meanwhile the EU is demanding that the DG keep the timetable as scheduled with the signalling conference tomorrow. The EU says that it needs to see progress on services before it can make any further changes in position on agriculture and NAMA. This has industry even more confused.
Meanwhile the EU is demanding that the DG keep the timetable as scheduled with the signalling conference tomorrow. The EU says that it needs to see progress on services before it can make any further changes in position on agriculture and NAMA. This has industry even more confused.
Day Two
The first Green Room session devoted to a detailed run though texts doesn't appear to have bridged differences. Position remain entrenched with the US subsidy offer deemed too little by delegations such as Brazil, India and South Africa. As a result there has been no willingness by these delegations and others such as Argentina, to make any concessions on liberalisation of non-agricultural tariffs.
These two media accounts square with accounts we are receiving from key delegations
Reuters
Xinhua
These two media accounts square with accounts we are receiving from key delegations
Reuters
Xinhua
Tuesday, July 22, 2008
Nath On Way Back To Geneva
But will this be a positive or negative???
After a convincing victory of the government in the trust vote, Commerce and Industry Minister Kamal Nath is heading for Geneva to lead India's negotiations in the crucial WTO talks. Nath, who went to Geneva before the talks on Doha Round began, had to return here for participating in the confidence vote. "I am leaving for Geneva right away," Commerce and Industry Minister said.
After a convincing victory of the government in the trust vote, Commerce and Industry Minister Kamal Nath is heading for Geneva to lead India's negotiations in the crucial WTO talks. Nath, who went to Geneva before the talks on Doha Round began, had to return here for participating in the confidence vote. "I am leaving for Geneva right away," Commerce and Industry Minister said.
US Offer On Domestic Subsidies
The US has released its latest offer on domestic subsidies. We were expecting US$15.5 billion. It is lower at $15 billion.
The offer has been dismissed by India as not serious. But has received a reasonably positive reaction from the EU. The EU does see further room for movement.
We understand that the US will make at least one further offer before these negotiations conclude. Expect something around the $14 billion to $14.5 billion mark.
The offer has been dismissed by India as not serious. But has received a reasonably positive reaction from the EU. The EU does see further room for movement.
We understand that the US will make at least one further offer before these negotiations conclude. Expect something around the $14 billion to $14.5 billion mark.
The G10 Statement
As promised the G10 statement issued before the Ministerial process began
Ministers of the G-10 met in Geneva today ahead of the informal WTO Ministerial meeting that will start Monday 21 July in order to assess the state of play of the DDA negotiations, to exchange views on the revised Draft Modalities text and to reaffirm their priorities in agriculture.
G-10 Ministers reiterated their commitment to a successful conclusion of the Modalities, the first but most important step to conclude this Doha Round.
G-10 Ministers commended the Chair of the Agriculture negotiations for his constant and tireless efforts which have culminated in the revised text issued the 10th of July. G-10 Ministers acknowledged that progress has been made in agriculture. However, they regretted the fact that certain groups of WTO Members, G-10 in particular, are requested to bear an excessive and disproportionate burden in the agriculture modalities negotiations.
The Ministers reaffirmed that their priorities lie in opposing the introduction of tariff capping, achieving appropriate flexibilities in the number and treatment of sensitive products, as well as moderating the tariff cuts, particularly in the upper band. Given the fact that the G-10 Members will have to pay the highest price in these agricultural negotiations, an agreement can only be found by taking into account the main concerns of the G-10 and with a balanced outcome within the three pillars of the agriculture negotiations. They are also of the view that serious efforts have to be made by others as well in order to restore balance among different areas of the DDA negotiations under the principle of the single undertaking.
Ministers also reiterated their concern over the recent worsening of food crisis, increasingly threatening the food security of net-food importing Members, including G-10 Members. In this context, Ministers discussed the issue of export restrictions and endorsed the view that the disciplines on this area need to be strengthened.
Ministers of the G-10 met in Geneva today ahead of the informal WTO Ministerial meeting that will start Monday 21 July in order to assess the state of play of the DDA negotiations, to exchange views on the revised Draft Modalities text and to reaffirm their priorities in agriculture.
G-10 Ministers reiterated their commitment to a successful conclusion of the Modalities, the first but most important step to conclude this Doha Round.
G-10 Ministers commended the Chair of the Agriculture negotiations for his constant and tireless efforts which have culminated in the revised text issued the 10th of July. G-10 Ministers acknowledged that progress has been made in agriculture. However, they regretted the fact that certain groups of WTO Members, G-10 in particular, are requested to bear an excessive and disproportionate burden in the agriculture modalities negotiations.
The Ministers reaffirmed that their priorities lie in opposing the introduction of tariff capping, achieving appropriate flexibilities in the number and treatment of sensitive products, as well as moderating the tariff cuts, particularly in the upper band. Given the fact that the G-10 Members will have to pay the highest price in these agricultural negotiations, an agreement can only be found by taking into account the main concerns of the G-10 and with a balanced outcome within the three pillars of the agriculture negotiations. They are also of the view that serious efforts have to be made by others as well in order to restore balance among different areas of the DDA negotiations under the principle of the single undertaking.
Ministers also reiterated their concern over the recent worsening of food crisis, increasingly threatening the food security of net-food importing Members, including G-10 Members. In this context, Ministers discussed the issue of export restrictions and endorsed the view that the disciplines on this area need to be strengthened.
Mandelson: We Are Not Going To Resolve Things This Week
EU Commissioner Mandelson told European business representatives this morning that negotiations will not be concluded on Saturday. If they are to reach concensus negotiations will ahve to continue into next week he says.
Mandelson Sees Differences Between US And Canada/Australia/New Zealand On TRIPs Issues
EU Commissioner Peter Mandelson briefed European business groups today on progress in the negotiations. He reported that Canada, Australia and New Zealand Ministers appear to be much more reasonable than the US on the GI, CBD, Wines and Spirits Register issues. He is therefore hopeful of making some progress but it will be difficult. He reported also that the coalition paper put forward by the EU and developing countries remains intact.
Still No Serious Engagement Inside the Green Room
We have now been able to speak to most participants in yesterday's Green Room process. It is clear that serious negotiations have yet to begin. Some are hopeful that these will start today with a full review of the agriculture and NAMA texts. India not being in the meeting is a bit of a problem and may result in further delays in serious engagement. Nath does not arrive back in Geneva until tomorrow afternoon.
Argentina and South Africa are seen as being the most difficult countries after day one. No one is sure whether they are determined to disrupt or destroy negotiations or whether they are just reflecting chaos at home (and a consequent lack of negotiating mandate).
Argentina and South Africa are seen as being the most difficult countries after day one. No one is sure whether they are determined to disrupt or destroy negotiations or whether they are just reflecting chaos at home (and a consequent lack of negotiating mandate).
Ministerial Day One
We have one Minister - Egypt saying that he is now less optimistic of a breakthrough in the WTO negotiations following yesterday's Green Room session.
This summary is from Reuters
The United States, the European Union and emerging economic heavyweights will try again on Tuesday to line up the long-elusive trade-offs needed to save a deal to dismantle export barriers around the world.
The United States resisted calls on Monday to announce a cut in its ceiling for farm subsidies as a critical week of talks opened, saying it was ready to act as long as others do likewise, especially developing economies like Brazil and China.
The World Trade Organisation's Doha round of negotiations risks years of further delay without a breakthrough this week.
But some top trade officials doubted that would be possible, given the range of issues to be resolved and the fundamental differences that still separate rich and poor countries.
"I have to say that after today's meeting I am less optimistic than before," said Egyptian Trade Minister Rachid Mohamed Rachid after WTO chief Pascal Lamy summoned more than 30 ministers to spell out what they can do to secure a deal.
He told Reuters more talks might have to be scheduled in the coming two weeks, before Europe shuts down for the summer.
After that, the U.S. presidential election campaign is likely to put the Doha round on ice and it could be a year or two before it can be revived, officials say, dashing hopes for a rare piece of good news for the slowing global economy.
The round was launched shortly after the Sept. 11, 2001 attacks on the United States to bolster the global economy and offer a chance to poor countries to export more and fight poverty.
But the negotiations remain bogged down, largely because many poor countries insist their rich counterparts must bear the brunt of the concessions by scaling back farm protections while Brussels and Washington are leaning increasingly on big emerging nations to open up their economies.
TRADE NOW, CLIMATE TOMORROW?
The battle at the WTO is seen by many as a test of how other global deals can be done, notably next year on climate change, given the shifting balance of power as new heavyweights such as India and China grow in confidence. Many ministers in Geneva will be seeking a lead from the United States on Tuesday when it will again come under pressure to say how far it will lower its ceiling on farm subsidies.
"I'm sure it will come tomorrow...Otherwise it will be difficult to move a bit forward," said European Agriculture Commissioner Mariann Fischer Boel.
But U.S. trade chief Susan Schwab said Washington would not be rushing into playing its key card in the negotiations without signs that the big emerging economies were ready to move too.
"When we address the...domestic support issue, it will address our desire to invite others to also participate in a 'can do' type of conversation, instead of a 'can't do' conversation," she told reporters.
Latest WTO proposals would require the United States to cut trade-distorting farm subsidies to a range of $13 billion to $16.4 billion a year from a current ceiling of $48.2 billion.
The range is above current U.S. spending on subsidies of about $7 billion although the handout figure is low because global foods prices are so high.
The EU is under pressure to cut its farm tariffs and limit the number of "sensitive" products that would be shielded from the deepest tariff cuts.
EU Trade Commissioner Peter Mandelson said the EU's offer on farm tariff cuts now represented an average cut of about 60 percent which represented a "further iteration" on a previous estimate of a reduction of 54 percent.
This summary is from Reuters
The United States, the European Union and emerging economic heavyweights will try again on Tuesday to line up the long-elusive trade-offs needed to save a deal to dismantle export barriers around the world.
The United States resisted calls on Monday to announce a cut in its ceiling for farm subsidies as a critical week of talks opened, saying it was ready to act as long as others do likewise, especially developing economies like Brazil and China.
The World Trade Organisation's Doha round of negotiations risks years of further delay without a breakthrough this week.
But some top trade officials doubted that would be possible, given the range of issues to be resolved and the fundamental differences that still separate rich and poor countries.
"I have to say that after today's meeting I am less optimistic than before," said Egyptian Trade Minister Rachid Mohamed Rachid after WTO chief Pascal Lamy summoned more than 30 ministers to spell out what they can do to secure a deal.
He told Reuters more talks might have to be scheduled in the coming two weeks, before Europe shuts down for the summer.
After that, the U.S. presidential election campaign is likely to put the Doha round on ice and it could be a year or two before it can be revived, officials say, dashing hopes for a rare piece of good news for the slowing global economy.
The round was launched shortly after the Sept. 11, 2001 attacks on the United States to bolster the global economy and offer a chance to poor countries to export more and fight poverty.
But the negotiations remain bogged down, largely because many poor countries insist their rich counterparts must bear the brunt of the concessions by scaling back farm protections while Brussels and Washington are leaning increasingly on big emerging nations to open up their economies.
TRADE NOW, CLIMATE TOMORROW?
The battle at the WTO is seen by many as a test of how other global deals can be done, notably next year on climate change, given the shifting balance of power as new heavyweights such as India and China grow in confidence. Many ministers in Geneva will be seeking a lead from the United States on Tuesday when it will again come under pressure to say how far it will lower its ceiling on farm subsidies.
"I'm sure it will come tomorrow...Otherwise it will be difficult to move a bit forward," said European Agriculture Commissioner Mariann Fischer Boel.
But U.S. trade chief Susan Schwab said Washington would not be rushing into playing its key card in the negotiations without signs that the big emerging economies were ready to move too.
"When we address the...domestic support issue, it will address our desire to invite others to also participate in a 'can do' type of conversation, instead of a 'can't do' conversation," she told reporters.
Latest WTO proposals would require the United States to cut trade-distorting farm subsidies to a range of $13 billion to $16.4 billion a year from a current ceiling of $48.2 billion.
The range is above current U.S. spending on subsidies of about $7 billion although the handout figure is low because global foods prices are so high.
The EU is under pressure to cut its farm tariffs and limit the number of "sensitive" products that would be shielded from the deepest tariff cuts.
EU Trade Commissioner Peter Mandelson said the EU's offer on farm tariff cuts now represented an average cut of about 60 percent which represented a "further iteration" on a previous estimate of a reduction of 54 percent.
Monday, July 21, 2008
G33 Looking To US For Leadership
From Reuters
Developing countries are waiting to see how much Washington is willing to cut its farm subsidies before adjusting their stances in key negotiations this week, Indonesia's Trade Minister Mari Pangestu said on Monday.
The size of U.S. farm support is one of the major issues at talks that started at the World Trade Organization (WTO) on Monday, where ministers are seeking a breakthrough in the nearly 7-year-old negotiations for a new global trade pact.
U.S. Trade Representative Susan Schwab earlier signaled the United States would contribute to a successful outcome of the Doha round talks by cutting is agricultural subsidies.
"We are looking for a concrete offer on the table which hasn't come out yet. We are looking for U.S. leadership on this issue," Pangestu, whose country chairs the G-33 group of developing nations, told Reuters in an interview.
The level of U.S. subsidies is sensitive because developing countries say they squeeze their own farmers out of the market.
Pangestu, an economist, said rich-country subsidies were one of several factors behind the current food crisis because they depressed prices artificially, discouraging farmers from producing or from investing in technology to improve productivity. The result is declining food supply, she said.
SPECIAL PRODUCTS
For the G-33 group, formed to fight for better treatment for developing countries in the WTO deal, two of the most important issues are proposals known as special products and the special safeguard mechanism.
Developing countries are waiting to see how much Washington is willing to cut its farm subsidies before adjusting their stances in key negotiations this week, Indonesia's Trade Minister Mari Pangestu said on Monday.
The size of U.S. farm support is one of the major issues at talks that started at the World Trade Organization (WTO) on Monday, where ministers are seeking a breakthrough in the nearly 7-year-old negotiations for a new global trade pact.
U.S. Trade Representative Susan Schwab earlier signaled the United States would contribute to a successful outcome of the Doha round talks by cutting is agricultural subsidies.
"We are looking for a concrete offer on the table which hasn't come out yet. We are looking for U.S. leadership on this issue," Pangestu, whose country chairs the G-33 group of developing nations, told Reuters in an interview.
The level of U.S. subsidies is sensitive because developing countries say they squeeze their own farmers out of the market.
Pangestu, an economist, said rich-country subsidies were one of several factors behind the current food crisis because they depressed prices artificially, discouraging farmers from producing or from investing in technology to improve productivity. The result is declining food supply, she said.
SPECIAL PRODUCTS
For the G-33 group, formed to fight for better treatment for developing countries in the WTO deal, two of the most important issues are proposals known as special products and the special safeguard mechanism.
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.
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.
World Trade Organization - Day 1: Ministers begin final effort to agree blueprints of deal
Now on the WTO website....
DAY 1: MINISTERS BEGIN FINAL EFFORT TO AGREE BLUEPRINTS OF DEAL
On the opening day of about a week of negotiations in Geneva, ministers said a Doha Round deal is badly needed because of economic uncertainties. They promised to strive to settle their differences on blueprint agreements — "modalities" — in agriculture and industrial products, provided the outcome is balanced.
News item: http://www.wto.org/english/news_e/news08_e/meet08_summary_21july_e.htm
Today's Trade Negtotiating Committee Meeting
This week is all about resolving differences. To do this key Ministers drawn from the WTO membership - representing either major trading economies or particular interests (eg agriculture, cotton, bananas) are meeting to try and achieve a meeting of minds. But as the WTO operates on a consensus basis, all members must be involved and comfortable with outcomes. For this reason all members are meeting at head of delegation level every morning as the Trade Negotiating Committee.
As today was the first meeting many members wanted to speak. Not all managed to take the floor before the meeting was adjourned so tomorrow's meeting will see a continuation of today's process. All Ministers who asked to speak were able to speak today.
Process
DG Lamy's speech is available on the WTO website. He spoke mainly about process. He announced that the Trade Negotiations Committee will move from an informal process to a formal process on Saturday. This may be able to take decisions on the basis of this week's work. It would also receive reports from Chairs other than those of agriculture and non-agricultural market access (there is no guarantee that this meeting will end Saturday and many Ministers referred to the possibility of staying on until next week).
EU
Mandelson gave one of the strongest speeches. Probably as a result of two Ministers being there to lay out some strong markers on agriculture, and the GI issue. Many members noted his comment that the EU wants to see new market access on non-agricultural goods, and that "nothing else will do for the EU".
Brazil, Argentina and Indonesia
All mentioned that there is much more work to be done on agriculture and that it was a myth that the agriculture talks were largely agreed. They all said that there was an imbalance in the negotiations. On agriculture the major developed countries were being given exemptions at the cost of the developing members, while on NAMA, the burden was being placed on developing countries to give. Brazil and Indonesia suggested that a deal was possible but that this imbalance would need to be addressed. Argentina seemed to be rejecting the NAMA text saying that the text was not fit for the type of horizontal process that members were currently engaged in.
Venezuela
Argued that it was unhappy about the process, which it did not feel fully part of. It would participate, but reserved the right to withdraw.
G10 (the agriculture neanderthals)
They see unfinished business also in the agriculture text and have issued a communique outlining their concerns - we will track this down).
Jamaica
Was worried about the balance in the negotiations. More needed to be done for the developing countries.
Lesotho
On behalf of the least developed countries called for more progress on duty free and quota free access. It was looking to the developed countries and larger developing countries for action. It called for a solution on cotton this week.
Services
EU, Switzerland, Australia, Japan, Kenya, Venezuela and Korea all emphasised the importance of achieving outcomes on services. Why the US and some others did not mention this important area is a concern for some.
As today was the first meeting many members wanted to speak. Not all managed to take the floor before the meeting was adjourned so tomorrow's meeting will see a continuation of today's process. All Ministers who asked to speak were able to speak today.
Process
DG Lamy's speech is available on the WTO website. He spoke mainly about process. He announced that the Trade Negotiations Committee will move from an informal process to a formal process on Saturday. This may be able to take decisions on the basis of this week's work. It would also receive reports from Chairs other than those of agriculture and non-agricultural market access (there is no guarantee that this meeting will end Saturday and many Ministers referred to the possibility of staying on until next week).
EU
Mandelson gave one of the strongest speeches. Probably as a result of two Ministers being there to lay out some strong markers on agriculture, and the GI issue. Many members noted his comment that the EU wants to see new market access on non-agricultural goods, and that "nothing else will do for the EU".
Brazil, Argentina and Indonesia
All mentioned that there is much more work to be done on agriculture and that it was a myth that the agriculture talks were largely agreed. They all said that there was an imbalance in the negotiations. On agriculture the major developed countries were being given exemptions at the cost of the developing members, while on NAMA, the burden was being placed on developing countries to give. Brazil and Indonesia suggested that a deal was possible but that this imbalance would need to be addressed. Argentina seemed to be rejecting the NAMA text saying that the text was not fit for the type of horizontal process that members were currently engaged in.
Venezuela
Argued that it was unhappy about the process, which it did not feel fully part of. It would participate, but reserved the right to withdraw.
G10 (the agriculture neanderthals)
They see unfinished business also in the agriculture text and have issued a communique outlining their concerns - we will track this down).
Jamaica
Was worried about the balance in the negotiations. More needed to be done for the developing countries.
Lesotho
On behalf of the least developed countries called for more progress on duty free and quota free access. It was looking to the developed countries and larger developing countries for action. It called for a solution on cotton this week.
Services
EU, Switzerland, Australia, Japan, Kenya, Venezuela and Korea all emphasised the importance of achieving outcomes on services. Why the US and some others did not mention this important area is a concern for some.
Wine and Spirits, GIs and Convention For Biodiversity Could Blow Round Apart
Several Ministers are fuming about EU attempts to introduce new issues onto the Ministerial agenda this week. Several of these Ministers attended a breakfast organised by USTR Schwab to discuss tactics.
Ministers Told To Prepare To Stay Until Next Week
The 29 Ministers in Geneva for the WTO Ministerial meeting have been told to be prepared for negotiations to strech into next week. Maybe until next Tuesday.
The latest plan is for revised agriculture and non-agricultural market access texts to be presented on Friday morning at the earliest. Intense activity can be expected from that point onwards.
The latest plan is for revised agriculture and non-agricultural market access texts to be presented on Friday morning at the earliest. Intense activity can be expected from that point onwards.
Nath Returns To New Delhi
One of the key players in this week's Ministerial meeting Indian Commerce Minister Nath has had to return to India for a crucial Parliamentary vote. He will not be returning to Geneva until Wednesday. This means that no substantive progress is likely until at least Wednesday - at Ministerial level anyway.
TNC Begins In Geneva
Ministerial week in fact began over the weekend but formal (informal) proceeding have just begun with the convening of the Doha Round's peak body the Trade Negotiations Committee.
The Ministerial Green Room process is set to begin at 4pm today.
The Ministerial Green Room process is set to begin at 4pm today.
Sunday, July 20, 2008
Around The Blogs
The Hive quotes Brazil as saying it is willing to wait four years for a WTO outcome.
Aaron Thompson suggests that Brazil's NAZI references have rocked the WTO.
The Huffington Post posts on the same subject.
As does My Errant Mind.
Aaron Thompson suggests that Brazil's NAZI references have rocked the WTO.
The Huffington Post posts on the same subject.
As does My Errant Mind.
WTO Beginning To Sound Like UN
Positions are polarising in the run up to tomorrow's WTO Ministerial. Brazil, India and South Africa seem to be seeing things as a struggle between the North and South. Having a Brazilian Minister who used to be Ambassador to the UN seems to be a factor here.
Brazil is willing to wait until 2012 in order to secure a better deal on the negotiating table at the World Trade Organisation (WTO), its Foreign Minister Celso Amorim said Saturday.
Speaking to journalists in Geneva, where WTO talks are set to enter a crucial new phase on Monday, he said a failure next week would put back the conclusion of an agreement by another three or four years.
The Geneva meeting will bring together around 30 big WTO players in a bid to salvage the so-called Doha Round of trade liberalisation talks, launched in the Qatari capital in 2001 and which has struggled ever since with developed and developing countries alike refusing to budge on their core interests.
"If we wait, we will obtain a better agreement" than the one currently on offer, said the minister, adding that public opinion was "changing in our favour."
Amorim is the developing world's main representative in the WTO talks and the public face of the G20, the grouping of developing countries co-led by Brazil and India.
He is seen as a hard negotiator committed to seeing wealthy countries cut agricultural subsidies that are barriers to farm imports from Brazil and other nations.
Amorim accused developed countries of demanding too much from other countries. "One cannot snatch the maximum from the weakest and give only the minimum in exchange," he said.
Brazil is willing to wait until 2012 in order to secure a better deal on the negotiating table at the World Trade Organisation (WTO), its Foreign Minister Celso Amorim said Saturday.
Speaking to journalists in Geneva, where WTO talks are set to enter a crucial new phase on Monday, he said a failure next week would put back the conclusion of an agreement by another three or four years.
The Geneva meeting will bring together around 30 big WTO players in a bid to salvage the so-called Doha Round of trade liberalisation talks, launched in the Qatari capital in 2001 and which has struggled ever since with developed and developing countries alike refusing to budge on their core interests.
"If we wait, we will obtain a better agreement" than the one currently on offer, said the minister, adding that public opinion was "changing in our favour."
Amorim is the developing world's main representative in the WTO talks and the public face of the G20, the grouping of developing countries co-led by Brazil and India.
He is seen as a hard negotiator committed to seeing wealthy countries cut agricultural subsidies that are barriers to farm imports from Brazil and other nations.
Amorim accused developed countries of demanding too much from other countries. "One cannot snatch the maximum from the weakest and give only the minimum in exchange," he said.
Saturday, July 19, 2008
The Various Alliances At Play Next Week
Reuters have kindly prepared a summary of the the membership of some of the groupings that will be mentioned in the reporting on next week's Ministerial.
And This From The Guardian
France said on Friday the European Union had exhausted its scope for concessions on agriculture in world trade talks and could not give more ground in crucial ministerial negotiations in Geneva next week.
"We have a shared objective: to achieve a rebalancing of the concessions the EU has already made," French Trade Secretary Anne-Marie Idrac told a news conference after chairing a meeting of trade ministers and officials from the 27-nation EU.
"The European Union has run out of room for manoeuvre on agriculture and cannot go any further." French President Nicolas Sarkozy has previously accused EU trade chief Peter Mandelson of giving away too many farm concessions and winning little on industrial goods and services from big developing countries such as Brazil, India and China.
France holds the EU's presidency, making it a key player in brokering the bloc's response to any deal next week to rescue the World Trade Organisation's Doha talks for a global free trade deal which have dragged into their seventh year.
Without a breakthrough next week, the Doha round risks further years of delay as the United States turns its focus to November's presidential election and next year's change at the White House while the European Commission ends its term in 2009.
MANDELSON SAYS STRENGTHENED
Mandelson, speaking after addressing Friday's meeting, said he felt EU governments had strengthened his hand in pressing for more concessions from others in the WTO talks. "I feel stronger going to Geneva following the meeting," he told reporters.
"Member states strongly supported the request we have made for more market access in emerging economy countries. They want, as I do, that we get proper return for what we are putting on the table. There has to be balance."
Next week's meeting of about 30 trade ministers will aim for a deal on the core issues of farm and industrial goods.
The round was launched shortly after the 2001 terror attacks on the United States in a bid to give the global economy a boost and help poor countries export more. It has been stymied by rifts between rich and poor countries over how to free up trade.
As well as France, other EU countries are also concerned about the possible outcome of a deal.
Ireland accused Mandelson on Friday of contributing to the rejection of the EU's Lisbon Treaty by Irish voters last month with his WTO farm concessions, a diplomat at the meeting said. But many EU countries were more supportive of the British commission's efforts to squeeze concessions from WTO partners.
Pro-free trade Sweden said a deal was needed for "wider political and systemic reasons," echoing warnings from some top trade officials that a WTO flop would augur badly for attempts to hammer out a global climate change agreement next year.
Germany, the world's biggest exporter and whose support will be vital to Mandelson if a WTO deal is struck next week, said it wanted an improvement on proposals on the table at the WTO.
Europe's top business lobby also stressed the importance of opening up big developing economies under a WTO deal, saying in a letter to Mandelson that he had already offered open up Europe's markets in agriculture, industry and services.
"It is now time for our trading partners -- especially the emerging economies -- to reciprocate," the letter said.
"We have a shared objective: to achieve a rebalancing of the concessions the EU has already made," French Trade Secretary Anne-Marie Idrac told a news conference after chairing a meeting of trade ministers and officials from the 27-nation EU.
"The European Union has run out of room for manoeuvre on agriculture and cannot go any further." French President Nicolas Sarkozy has previously accused EU trade chief Peter Mandelson of giving away too many farm concessions and winning little on industrial goods and services from big developing countries such as Brazil, India and China.
France holds the EU's presidency, making it a key player in brokering the bloc's response to any deal next week to rescue the World Trade Organisation's Doha talks for a global free trade deal which have dragged into their seventh year.
Without a breakthrough next week, the Doha round risks further years of delay as the United States turns its focus to November's presidential election and next year's change at the White House while the European Commission ends its term in 2009.
MANDELSON SAYS STRENGTHENED
Mandelson, speaking after addressing Friday's meeting, said he felt EU governments had strengthened his hand in pressing for more concessions from others in the WTO talks. "I feel stronger going to Geneva following the meeting," he told reporters.
"Member states strongly supported the request we have made for more market access in emerging economy countries. They want, as I do, that we get proper return for what we are putting on the table. There has to be balance."
Next week's meeting of about 30 trade ministers will aim for a deal on the core issues of farm and industrial goods.
The round was launched shortly after the 2001 terror attacks on the United States in a bid to give the global economy a boost and help poor countries export more. It has been stymied by rifts between rich and poor countries over how to free up trade.
As well as France, other EU countries are also concerned about the possible outcome of a deal.
Ireland accused Mandelson on Friday of contributing to the rejection of the EU's Lisbon Treaty by Irish voters last month with his WTO farm concessions, a diplomat at the meeting said. But many EU countries were more supportive of the British commission's efforts to squeeze concessions from WTO partners.
Pro-free trade Sweden said a deal was needed for "wider political and systemic reasons," echoing warnings from some top trade officials that a WTO flop would augur badly for attempts to hammer out a global climate change agreement next year.
Germany, the world's biggest exporter and whose support will be vital to Mandelson if a WTO deal is struck next week, said it wanted an improvement on proposals on the table at the WTO.
Europe's top business lobby also stressed the importance of opening up big developing economies under a WTO deal, saying in a letter to Mandelson that he had already offered open up Europe's markets in agriculture, industry and services.
"It is now time for our trading partners -- especially the emerging economies -- to reciprocate," the letter said.
EU Unity Still A Challenge
EU Trade Commissioner Mandelson's job next week will be difficult enough without having to worry about internal unity.
It seems that differences remain after yesterday's meeting of EU Ministers
EU ministers struggled on Friday to show a united front ahead of vital WTO trade negotiations next week with Ireland and France deeply concerned Europe may have conceded too much on agriculture.
French Trade Minister Anne-Marie Idrac said after a meeting with EU counterparts that they agreed that the WTO talks needed a "new balance" to take better account of concessions Europe had already put on the table.
We have "a common goal, which is to obtain a new balance in the concessions that the Union has already made" to the World Trade Organisation, she told journalists after chairing the meeting in Brussels.
Idrac, whose country holds the European Union's rotating presidency, said the new balance must be "effective" and "not cosmetic".
She said: "The general sentiment is that Europe has exhausted its room for manoeuvre in the agricultural sector and can go no further."
EU ministers met in Brussels to prepare Europe's stance ahead of talks in Geneva starting on Monday, where 30 leading WTO nations will try to salvage long-floundering trade liberalisation negotiations.
France has long railed against Europe making big concessions on agriculture, but as holder of the EU presidency was careful to tone down its rhetoric on agriculture.
The European Union has struggled in recent weeks to show unity with France in open conflict with EU trade chief Peter Mandelson, accusing the former British cabinet minister of offering too much on agriculture in the negotiations.
While France avoided controversy on agriculture, Ireland -- Paris' long-time ally on agriculture -- accused the European Commission of offering too much as Europe's negotiator within the WTO while getting little in return.
"I think they have gone way too far on agriculture," Irish Trade Minister John McGuinness told journalists. "We are keenly interested in a deal... however that deal has to be balanced."
He also refused to rule out the possibility of Ireland vetoing any trade deal that did not suit Dublin, describing it as an "option."
"It's a fact that it is there. I think that it would be ... foolish of Mr. Mandelson to ignore the positions taken around the table this morning," McGuiness said.
Accounting for 20 percent of global trade, the EU is a heavy hitter in the WTO, where it has long been under pressure from emerging agriculture powers and the United States to ease its farm support.
Clashes between Brussels and Paris have become commonplace over the years at each important phase of the WTO talks, with both current President Nicolas Sarkozy and his predecessor Jacques Chirac adamantly against making big concessions on farm products.
Sarkozy has accused Mandelson in recent weeks of forcing a WTO deal on Europe which would threaten 100,000 jobs in the agriculture while also cutting farm output.
Mandelson, who has counter-attacked by accusing Paris of undermining him as Europe's top trade negotiator, stressed on Thursday that he had not overstepped his remit in the negotiations.
Although Mandelson has long insisted that Europe can offer no more on agriculture unless others make painful concessions too, he made a gesture earlier this week to Latin America by offering to accept a compromise on a decades-old banana dispute.
Mandelson warned on Thursday that failure to resolve the banana dispute, which Brussels hopes to do over the weekend before the Geneva meeting, would weigh on broader negotiations at the WTO.
"If they are not accepting, we will not be able to agree on a wider agreement for the tropical products, and then we will have no Doha deal," he said.
It seems that differences remain after yesterday's meeting of EU Ministers
EU ministers struggled on Friday to show a united front ahead of vital WTO trade negotiations next week with Ireland and France deeply concerned Europe may have conceded too much on agriculture.
French Trade Minister Anne-Marie Idrac said after a meeting with EU counterparts that they agreed that the WTO talks needed a "new balance" to take better account of concessions Europe had already put on the table.
We have "a common goal, which is to obtain a new balance in the concessions that the Union has already made" to the World Trade Organisation, she told journalists after chairing the meeting in Brussels.
Idrac, whose country holds the European Union's rotating presidency, said the new balance must be "effective" and "not cosmetic".
She said: "The general sentiment is that Europe has exhausted its room for manoeuvre in the agricultural sector and can go no further."
EU ministers met in Brussels to prepare Europe's stance ahead of talks in Geneva starting on Monday, where 30 leading WTO nations will try to salvage long-floundering trade liberalisation negotiations.
France has long railed against Europe making big concessions on agriculture, but as holder of the EU presidency was careful to tone down its rhetoric on agriculture.
The European Union has struggled in recent weeks to show unity with France in open conflict with EU trade chief Peter Mandelson, accusing the former British cabinet minister of offering too much on agriculture in the negotiations.
While France avoided controversy on agriculture, Ireland -- Paris' long-time ally on agriculture -- accused the European Commission of offering too much as Europe's negotiator within the WTO while getting little in return.
"I think they have gone way too far on agriculture," Irish Trade Minister John McGuinness told journalists. "We are keenly interested in a deal... however that deal has to be balanced."
He also refused to rule out the possibility of Ireland vetoing any trade deal that did not suit Dublin, describing it as an "option."
"It's a fact that it is there. I think that it would be ... foolish of Mr. Mandelson to ignore the positions taken around the table this morning," McGuiness said.
Accounting for 20 percent of global trade, the EU is a heavy hitter in the WTO, where it has long been under pressure from emerging agriculture powers and the United States to ease its farm support.
Clashes between Brussels and Paris have become commonplace over the years at each important phase of the WTO talks, with both current President Nicolas Sarkozy and his predecessor Jacques Chirac adamantly against making big concessions on farm products.
Sarkozy has accused Mandelson in recent weeks of forcing a WTO deal on Europe which would threaten 100,000 jobs in the agriculture while also cutting farm output.
Mandelson, who has counter-attacked by accusing Paris of undermining him as Europe's top trade negotiator, stressed on Thursday that he had not overstepped his remit in the negotiations.
Although Mandelson has long insisted that Europe can offer no more on agriculture unless others make painful concessions too, he made a gesture earlier this week to Latin America by offering to accept a compromise on a decades-old banana dispute.
Mandelson warned on Thursday that failure to resolve the banana dispute, which Brussels hopes to do over the weekend before the Geneva meeting, would weigh on broader negotiations at the WTO.
"If they are not accepting, we will not be able to agree on a wider agreement for the tropical products, and then we will have no Doha deal," he said.
Friday, July 18, 2008
Monday's Ministerial
There is intense activity here in Geneva.
A new services text has been released.
And many Governments are commenting on prospects
The US is cautiously optimistic but is expecting more liberalisation from China etc.
EU Ministers are huddling
Asia is apparently ready for a deal but not at any price
And the importance of a deal on bananas continues to be emphasised
A new services text has been released.
And many Governments are commenting on prospects
The US is cautiously optimistic but is expecting more liberalisation from China etc.
EU Ministers are huddling
Asia is apparently ready for a deal but not at any price
And the importance of a deal on bananas continues to be emphasised
World Trade Organization - Chair offers slight chance of update to latest farm talks text
CHAIR OFFERS SLIGHT CHANCE OF UPDATE TO LATEST FARM TALKS TEXT
Further modifications to the latest agriculture draft text, in the form of corrections, are possible before a representative group of ministers start talks on 21 July, but only if members make more progress in small-group consultations, farm talks chairperson Crawford Falconer said today. He was speaking in the first meeting of the full membership since the agriculture draft was circulated a week ago.
News item: http://www.wto.org/english/news_e/news08_e/agric_17july08_e.htm
Audio: Chairperson Falconer's opening statement: http://www.wto.org/audio/falconer_2008_07_17_opening.mp3
Audio: Chairperson Falconer's concluding comments: http://www.wto.org/audio/falconer_2008_07_17_closing.mp3
Sarkozy v. Mandelson
The spat continues....
A conflict between the Trade Comissioner and French President has continued to damage the European Union's unity ahead of make or break world trade talks in Geneva next Monday.
The Trade Commissioner has fanned the flames of a bitter personal row with the French President ahead of a key pre-World Trade Organisation meeting of EU trade and development ministers.
Nicolas Sarkozy has repeatedly accused the trade commissioner of preparing a WTO deal that will sacrifice 100,000 farming jobs and agriculture business worth billions "at the altar" of free market ideology.
But Peter Mandelson claimed that that the attacks from the French leader had actually helped his case, remarks that will antagonise Paris by hinting that Mr Sarkozy, current holder of the EU's rotating Presidency, is isolated.
A conflict between the Trade Comissioner and French President has continued to damage the European Union's unity ahead of make or break world trade talks in Geneva next Monday.
The Trade Commissioner has fanned the flames of a bitter personal row with the French President ahead of a key pre-World Trade Organisation meeting of EU trade and development ministers.
Nicolas Sarkozy has repeatedly accused the trade commissioner of preparing a WTO deal that will sacrifice 100,000 farming jobs and agriculture business worth billions "at the altar" of free market ideology.
But Peter Mandelson claimed that that the attacks from the French leader had actually helped his case, remarks that will antagonise Paris by hinting that Mr Sarkozy, current holder of the EU's rotating Presidency, is isolated.
Thursday, July 17, 2008
World Trade Organization - New web pages on July 2008 meeting
THE JULY 2008 PACKAGE
The July 2008 package is a stepping stone on the way to concluding the Doha Round by the end of 2008. The main task before WTO members is to settle a range of questions that will shape the final agreement of the Doha Development Agenda. Political breakthrough requires consultations among a group of ministers representing all interests in the negotiations. They are meeting in Geneva in the week of 21 July. The outcome will be put to the full membership in the Trade Negotiations Committee.
Find out more at: http://www.wto.org/index.htm
World Trade Organization - Unofficial explanation of latest agriculture draft
UNOFFICIAL EXPLANATION OF LATEST AGRICULTURE DRAFT
An unofficial guide to the 10 July revised draft "modalities" text in agriculture is now available. You can download it in Word or pdf format at http://www.wto.org/english/tratop_e/agric_e/chair_texts08_e.htm, where the text itself is also available.
An unofficial guide to the 10 July revised draft "modalities" text in agriculture is now available. You can download it in Word or pdf format at http://www.wto.org/english/tratop_e/agric_e/chair_texts08_e.htm, where the text itself is also available.
Wednesday, July 16, 2008
India Finalises Strategy For WTO Ministerial
And it looks as though Nath will be in Geneva for first day of the meeting (he may have to return home on 22 July for the important vote in the Indian Parliament).
India on Tuesday finalised its game plan for the WTO Ministerial Meeting next week in Geneva with Prime Minister Manmohan Singh reviewing the country's negotiating strategy for the crucial Doha Round talks.
The strategy was finetuned at a meeting Commerce Minister Kamal Nath had with Singh for the talks next week where developing countries will get into five days of hard negotiations with rich nations for a fair global trade deal.
Nath is likely to leave for Geneva on Thursday for the Ministerial Meeting being convened on July 21 to clear a final blueprint for completing the much-delayed Doha Round. However, he would be back here for the July 22 confidence vote in Parliament, only to return to Geneva later.
The Minister is leading a strong team of officials from the ministries of Commerce, Finance and Agriculture. He would also be assisted by representatives of industry bodies.
India is spearheading several alliances like G-20, G-33 and NAMA (Non-Agricultural Market Access) of the developing countries to ensure that the 'development dimensions' of the Doha Round are safeguarded.
India on Tuesday finalised its game plan for the WTO Ministerial Meeting next week in Geneva with Prime Minister Manmohan Singh reviewing the country's negotiating strategy for the crucial Doha Round talks.
The strategy was finetuned at a meeting Commerce Minister Kamal Nath had with Singh for the talks next week where developing countries will get into five days of hard negotiations with rich nations for a fair global trade deal.
Nath is likely to leave for Geneva on Thursday for the Ministerial Meeting being convened on July 21 to clear a final blueprint for completing the much-delayed Doha Round. However, he would be back here for the July 22 confidence vote in Parliament, only to return to Geneva later.
The Minister is leading a strong team of officials from the ministries of Commerce, Finance and Agriculture. He would also be assisted by representatives of industry bodies.
India is spearheading several alliances like G-20, G-33 and NAMA (Non-Agricultural Market Access) of the developing countries to ensure that the 'development dimensions' of the Doha Round are safeguarded.
World Trade Organization - Registration begins for public observation of the Appellate Body oral hearing
REGISTRATION BEGINS FOR PUBLIC OBSERVATION OF THE APPELLATE BODY ORAL HEARING
At the request of the participants the Appellate Body has decided to open its oral hearing to public observation by WTO Members and the general public via simultaneous closed-circuit broadcast to a separate viewing room.
Find out more at: http://www.wto.org/english/tratop_e/dispu_e/public_hearing_july08_e.htm
Tuesday, July 15, 2008
Around The Blogs
LiveMint looks at the implications of a weakened Indian Government for the agricultural component of the forthcoming WTO Ministerial.
Farm Policy Facts reports that EU and US agricultural interests both see the WTO agriculture text as falling short.
Will the treatment of the banana trade kill the WTO round? The Daily Monitor in Uganda asks this question.
Developing countries under the African, Caribbean and Pacific Group have called for proper treatment of their banana exports’ interests if they are to strike a deal with their developed partners. The 79 African, Caribbean and Pacific (ACP) countries including Uganda say it will be “impossible” to support any consensus in the current World Trade Organisation Doha Development Agenda (WTO DDA) negotiations unless there is suitable treatment for bananas and other tropical products that are the subject of long-standing preferences of the negotiations, according to the latest communication from the Group’s Secretariat.
The European Journal Of International Trade Law looks at the proliferation of FTAs which share dispute settlement jurisdiction with the WTO
The proliferation of free trade agreements which share dispute settlement jurisdiction with the WTO has added to claims of disintegration within international trade law. Recent WTO jurisprudence is indicative of the limits of WTO members’ ability to invoke provisions of an FTA as a ‘jurisdictional defence’ where the dispute implicates trade measures under both WTO and FTA rules. Such uncertainty in the law has the potential not only to create issues of incoherent jurisprudence, but also to threaten the stability and predictability of the multilateral trading system. These issues are likely to continue to arise as FTAs continue to grow in abundance while the Doha round is stalled. Based on analysis of a selection of state–state disputes before other fora such as the International Court of Justice, this article argues that in the interest of the effective administration of justice, the WTO's judicial organ should use its inherent power of comity to decline to exercise jurisdiction so that the dispute can be resolved by an FTA tribunal where a dispute is inextricably connected with a dispute under an FTA and that exercising jurisdiction would not be reasonable in the circumstances.
Farm Policy Facts reports that EU and US agricultural interests both see the WTO agriculture text as falling short.
Will the treatment of the banana trade kill the WTO round? The Daily Monitor in Uganda asks this question.
Developing countries under the African, Caribbean and Pacific Group have called for proper treatment of their banana exports’ interests if they are to strike a deal with their developed partners. The 79 African, Caribbean and Pacific (ACP) countries including Uganda say it will be “impossible” to support any consensus in the current World Trade Organisation Doha Development Agenda (WTO DDA) negotiations unless there is suitable treatment for bananas and other tropical products that are the subject of long-standing preferences of the negotiations, according to the latest communication from the Group’s Secretariat.
The European Journal Of International Trade Law looks at the proliferation of FTAs which share dispute settlement jurisdiction with the WTO
The proliferation of free trade agreements which share dispute settlement jurisdiction with the WTO has added to claims of disintegration within international trade law. Recent WTO jurisprudence is indicative of the limits of WTO members’ ability to invoke provisions of an FTA as a ‘jurisdictional defence’ where the dispute implicates trade measures under both WTO and FTA rules. Such uncertainty in the law has the potential not only to create issues of incoherent jurisprudence, but also to threaten the stability and predictability of the multilateral trading system. These issues are likely to continue to arise as FTAs continue to grow in abundance while the Doha round is stalled. Based on analysis of a selection of state–state disputes before other fora such as the International Court of Justice, this article argues that in the interest of the effective administration of justice, the WTO's judicial organ should use its inherent power of comity to decline to exercise jurisdiction so that the dispute can be resolved by an FTA tribunal where a dispute is inextricably connected with a dispute under an FTA and that exercising jurisdiction would not be reasonable in the circumstances.
World Trade Organization - The WTO launches World Trade Report 2008: Trade in a Globalizing World
THE WTO LAUNCHES WORLD TRADE REPORT 2008: TRADE IN A GLOBALIZING WORLD
Trade and globalization have brought greater prosperity to hundreds of millions as well as greater stability among nations, according to a report published today by the WTO. In launching the report, Director-General Pascal Lamy urged all parties to give "that vital push" to the trade negotiations, "bearing in mind the lessons and insights of this report, and with the dark clouds gathering on the economic horizon."
Press release: http://www.wto.org/english/news_e/pres08_e/pr534_e.htm
World Trade Report 2008: http://www.wto.org/english/res_e/reser_e/wtr08_e.htm
Director-General's remarks: http://www.wto.org/english/news_e/sppl_e/sppl96_e.htm
World Trade Organization - Public Forum 2008 - Registration and programme now available
WTO PUBLIC FORUM 2008 - TRADING INTO THE FUTURE
The WTO Public Forum will take place 24-25 September 2008. Registration to attend the forum is now open and you can see the programme of the proposed sessions with summaries of the sessions where available on the public forum website
Public forum home page: http://www.wto.org/english/forums_e/public_forum08_e/public_forum08_e.htm
Public forum registration: https://meetings.wto.org/Forums/Registrant/SymposiumRegistration.aspx?Language=E
Public forum programme: http://www.wto.org/english/forums_e/public_forum08_e/programme_e.htm
Monday, July 14, 2008
World Trade Organization - TPR of Singapore
TRADE POLICY REVIEW: SINGAPORE
Singapore has a successful economy, open to trade and investment, according to a WTO Secretariat report on the country's trade policies and practices.
Press release: http://www.wto.org/english/tratop_e/tpr_e/tp302_e.htm
More on Singapore: http://www.wto.org/english/thewto_e/countries_e/singapore_e.htm
Blogs On WTO
Not much activity in the last couple of days.
The Hive is covering Nath's participation in the 21-24 July Ministerial.
International Trade Law News looks at the decline in anti-dumping actions taken by WTO members.
The Hive is covering Nath's participation in the 21-24 July Ministerial.
International Trade Law News looks at the decline in anti-dumping actions taken by WTO members.
World Trade Organization - Chair outlines future work in Rules negotiations
CHAIR OUTLINES FUTURE WORK IN RULES NEGOTIATIONS
The Chairman of the Negotiating Group on Rules, Amb. Guillermo Valles Galmés, on 14 July 2008 sent a fax to all participants outlining his views as to how the Rules negotiations could proceed in the period after the establishment of modalities in agriculture and NAMA.
Text of the Chair's fax: http://www.wto.org/english/news_e/news08_e/rules_14july08_e.htm
Sunday, July 13, 2008
Kamal Nath May Not Make First Two Days Of Ministerial
In a move that could ruin the WTO Ministerial Indian Commerce Minister Nath is now reported to be planning to stay in New Delhi until 22 July.
Commerce and Industry Minister Kamal Nath, who is scheduled to leave for Geneva on July 19 for crucial WTO talks, is likely to delay his departure till July 22 when the UPA government seeks confidence vote in Parliament. The World Trade Organisation is convening the Ministerial Meeting between July 21 and July 24 of key trade ministers who would get involved in hard negotiations for reaching a blueprint of an agreement on the much-delayed Doha Round. Nath, a Lok Sabha MP from Chindwara in Madhya Pradesh, not only has a crucial vote in the lower house but is also an ace strategist for the Congress Party, which is reaching out to several small parties and independent MPs for support on the nuclear deal. While the Commerce Minister has taken approval of Prime Minister Manmohan Singh to remain outside the country between July 19 and July 24, he would be required to stay back home for the trust vote. "In this scenario, the Minister will designate Commerce Secretary G K Pillai to participate in the negotiations on his behalf," an official said.
Commerce and Industry Minister Kamal Nath, who is scheduled to leave for Geneva on July 19 for crucial WTO talks, is likely to delay his departure till July 22 when the UPA government seeks confidence vote in Parliament. The World Trade Organisation is convening the Ministerial Meeting between July 21 and July 24 of key trade ministers who would get involved in hard negotiations for reaching a blueprint of an agreement on the much-delayed Doha Round. Nath, a Lok Sabha MP from Chindwara in Madhya Pradesh, not only has a crucial vote in the lower house but is also an ace strategist for the Congress Party, which is reaching out to several small parties and independent MPs for support on the nuclear deal. While the Commerce Minister has taken approval of Prime Minister Manmohan Singh to remain outside the country between July 19 and July 24, he would be required to stay back home for the trust vote. "In this scenario, the Minister will designate Commerce Secretary G K Pillai to participate in the negotiations on his behalf," an official said.
Nath To Come To Geneva But May Have To Fly Home
Well informed sources are telling Pascal that Indian trade minister Nath will come to Geneva for the 21-24 July Ministerial but that should a crucial vote need to be taken in the Indian Parliament he might have to take time out to fly back for the vote. He would then return to Geneva. The Ministerial will therefore not be postponed for this reason.
Friday, July 11, 2008
India Asks WTO Meeting To Be Postponed
This report out of India is suggesting that India is about to request a postponement of the forthcoming WTO Ministerial
As a result of the two-day special session of Parliament being convened for a trust vote, India will request the World Trade Organisation (WTO) to reschedule a meeting of trade ministers that was to begin on July 21 at Geneva.
The mini-ministerial is to be attended by nearly 50 trade ministers from across the world and aims to finalise the Doha round of trade talks. However, with Parliament session to be held on July 21 and 22, Commerce Minister Kamal Nath will not be able to reach Geneva on time.
Officials told Business Standard that the government will make a request to WTO shortly. The WTO secretariat is open to Indian official negotiators representing Nath on the opening day of the meeting on July 21, as there is unlikely to be any major discussion that day.
However, on other days, Nath's presence is mandatory, as he will have to negotiate the last few contentious issues on India's behalf.
All eyes will now be on the WTO as it will have to convince other trade ministers from nearly 50 countries to agree to India's proposal. The country is a significant player in the Doha Round, as it is home to more than nine million farming households.
Meanwhile, preparations are on in full swing at WTO for the meeting. Revised draft texts on agriculture and non-agricultural market access (Nama) were released on Thursday, and will form the basis of the talks.
However, the Indian industry has demanded a better draft text on non-agricultural market access (Nama).
As a result of the two-day special session of Parliament being convened for a trust vote, India will request the World Trade Organisation (WTO) to reschedule a meeting of trade ministers that was to begin on July 21 at Geneva.
The mini-ministerial is to be attended by nearly 50 trade ministers from across the world and aims to finalise the Doha round of trade talks. However, with Parliament session to be held on July 21 and 22, Commerce Minister Kamal Nath will not be able to reach Geneva on time.
Officials told Business Standard that the government will make a request to WTO shortly. The WTO secretariat is open to Indian official negotiators representing Nath on the opening day of the meeting on July 21, as there is unlikely to be any major discussion that day.
However, on other days, Nath's presence is mandatory, as he will have to negotiate the last few contentious issues on India's behalf.
All eyes will now be on the WTO as it will have to convince other trade ministers from nearly 50 countries to agree to India's proposal. The country is a significant player in the Doha Round, as it is home to more than nine million farming households.
Meanwhile, preparations are on in full swing at WTO for the meeting. Revised draft texts on agriculture and non-agricultural market access (Nama) were released on Thursday, and will form the basis of the talks.
However, the Indian industry has demanded a better draft text on non-agricultural market access (Nama).
Around The Blogs
Blog coverage of the WTO over the past 24 hours
The Hive helpfully summarises initial reactions to the revised texts.
The International Trade Law and Policy Blog reports that the WTO Appellate Body is to allow the public to observe oral hearings on a forthcoming case.
The Hive helpfully summarises initial reactions to the revised texts.
The International Trade Law and Policy Blog reports that the WTO Appellate Body is to allow the public to observe oral hearings on a forthcoming case.
WTO Stakeholder Briefings
The European Services Forum has advised the following:
The WTO Secretariat will organise regular briefings for external visitors during the WTO Ministerial and will also contact every one interested during their stay in Geneva. Please forward your email address to Susana Villalba (susana.villalba@wto.org) if you are interested; and forward this mail to any person you would know that will come to Geneva.
The WTO Secretariat will organise regular briefings for external visitors during the WTO Ministerial and will also contact every one interested during their stay in Geneva. Please forward your email address to Susana Villalba (susana.villalba@wto.org) if you are interested; and forward this mail to any person you would know that will come to Geneva.
Too Many Technical Issues For Ministers?
This also from Reuters
The idea was always to present trade ministers with a few simple political choices rather than have them wrestle with intricacies of tariff quota underfill mechanisms, decoupled income support or bananas.
But when ministers come to Geneva later this month seeking a breakthrough in long-running World Trade Organisation (WTO) talks they will still face a series of complex technical issues.
After a year narrowing gaps in the most sensitive areas of agriculture and industrial goods, the focus of discussions on the WTO's Doha round in the meeting starting July 21, WTO mediators say their proposals are now ready to go to ministers.
But in the often arcane negotiations, everything is intertwined.
An apparently straightforward political decision on how much to cut tariffs by is inextricably tangled up with import volumes of the various members of customs union, or consumption figures for processed foods versus fresh produce.
So the question arises whether ministerial discussions on the technical issues risk derailing the negotiation -- whose chances of success are put by WTO Director-General Pascal Lamy at only "more than 50 percent."
The idea was always to present trade ministers with a few simple political choices rather than have them wrestle with intricacies of tariff quota underfill mechanisms, decoupled income support or bananas.
But when ministers come to Geneva later this month seeking a breakthrough in long-running World Trade Organisation (WTO) talks they will still face a series of complex technical issues.
After a year narrowing gaps in the most sensitive areas of agriculture and industrial goods, the focus of discussions on the WTO's Doha round in the meeting starting July 21, WTO mediators say their proposals are now ready to go to ministers.
But in the often arcane negotiations, everything is intertwined.
An apparently straightforward political decision on how much to cut tariffs by is inextricably tangled up with import volumes of the various members of customs union, or consumption figures for processed foods versus fresh produce.
So the question arises whether ministerial discussions on the technical issues risk derailing the negotiation -- whose chances of success are put by WTO Director-General Pascal Lamy at only "more than 50 percent."
New Texts: What Were The Changes
We are grateful to Reuters for preparing this guide to the main changes to the new texts on agriculture and non-agricultural market access.
The new texts contain no surprises, and did not change existing proposals for cuts in tariffs and subsidies that will be left to ministers to decide.
The following are the main changes:
AGRICULTURE
* Tariff cap. The new text proposes that developed countries can keep tariffs of more than 100 percent only if the products concerned are included in that member's allowance for "sensitive products" -- a mechanism that allows countries to shield products from the full force of tariff cuts in return for letting in a quota of those goods at a lower tariff. In this case the quota would have to be bigger than usual.
* Special products. The new text simplifies the proposal for special products -- products that developing countries can shield from the full impact of tariff cuts for reasons of food or livelihood security or rural development. Developing countries would be able to designate 10-18 percent of tariff lines as special products. Under this arrangement either up to six percent of products would escape all tariff cuts, or no products would be entirely exempt from cuts.
* Special safeguard mechanism. The new text simplifies the proposal for the special safeguard, a mechanism allowing developing countries to raise tariffs to counter a surge in imports or collapse in prices. The text makes it clear that tariffs cannot rise above the level they had before any Doha agreement, except for the poorest least developed countries, and possibly for some small and vulnerable economies.
*"Green box" support. The new text revises proposals for farm subsidies that does not distort trade or encourage production, known as "green box", by allowing changes in the base period on which such support is based provided it does not change farmers' expectations.
*Export credits. The new text allows developing countries four years to phase in the proposed maximum repayment period of 180 days on export credits.
INDUSTRY
* Sectorals. Besides overall tariff cuts, countries are also negotiating agreements to eliminate tariffs entirely in certain sectors, such as chemicals or healthcare products. Currently 14 such sectoral deals are under negotiation. The new text drops the proposal for a mechanical link that would reward developing countries for participating in sectorals by allowing them a smaller cut in overall tariffs, in favour of a political link. This makes it clear that some developed countries will consider sectoral participation when negotiating tariff levels and special treatment for developing countries.
* Anti-concentration. The new text reaffirms that waivers to developing country tariff cuts should not allow them to exempt entire sectors from market opening. It adds a proposal that ministers should negotiate a minimum number of tariff lines or percentage of import volume in each sector that would be subject to full tariff cuts.
*Customs unions. The new text proposes that the members of the Latin American trade bloc Mercosur (Brazil, Argentina, Uruguay, Paraguay) should agree a common list of products shielded from the full impact of tariff cuts, and base these "flexibilities" on the trade volume of their biggest member, Brazil.
*New members. The new text drops the proposed grace period for the implementation of tariff cuts for recent members such as China, and changes the extra time proposed for implementation of new members to 3-4 years from 2-5 years. Thus China would have up to 14 years to implement tariff cuts, compared with 10 for other developing countries and 5 for developed members. The text retains a footnote that such new members may be able to seek further favourable treatment than that available to other developing countries.
For full details of the agriculture text, click on: here
For full details of the industrial goods text, click on: here
The new texts contain no surprises, and did not change existing proposals for cuts in tariffs and subsidies that will be left to ministers to decide.
The following are the main changes:
AGRICULTURE
* Tariff cap. The new text proposes that developed countries can keep tariffs of more than 100 percent only if the products concerned are included in that member's allowance for "sensitive products" -- a mechanism that allows countries to shield products from the full force of tariff cuts in return for letting in a quota of those goods at a lower tariff. In this case the quota would have to be bigger than usual.
* Special products. The new text simplifies the proposal for special products -- products that developing countries can shield from the full impact of tariff cuts for reasons of food or livelihood security or rural development. Developing countries would be able to designate 10-18 percent of tariff lines as special products. Under this arrangement either up to six percent of products would escape all tariff cuts, or no products would be entirely exempt from cuts.
* Special safeguard mechanism. The new text simplifies the proposal for the special safeguard, a mechanism allowing developing countries to raise tariffs to counter a surge in imports or collapse in prices. The text makes it clear that tariffs cannot rise above the level they had before any Doha agreement, except for the poorest least developed countries, and possibly for some small and vulnerable economies.
*"Green box" support. The new text revises proposals for farm subsidies that does not distort trade or encourage production, known as "green box", by allowing changes in the base period on which such support is based provided it does not change farmers' expectations.
*Export credits. The new text allows developing countries four years to phase in the proposed maximum repayment period of 180 days on export credits.
INDUSTRY
* Sectorals. Besides overall tariff cuts, countries are also negotiating agreements to eliminate tariffs entirely in certain sectors, such as chemicals or healthcare products. Currently 14 such sectoral deals are under negotiation. The new text drops the proposal for a mechanical link that would reward developing countries for participating in sectorals by allowing them a smaller cut in overall tariffs, in favour of a political link. This makes it clear that some developed countries will consider sectoral participation when negotiating tariff levels and special treatment for developing countries.
* Anti-concentration. The new text reaffirms that waivers to developing country tariff cuts should not allow them to exempt entire sectors from market opening. It adds a proposal that ministers should negotiate a minimum number of tariff lines or percentage of import volume in each sector that would be subject to full tariff cuts.
*Customs unions. The new text proposes that the members of the Latin American trade bloc Mercosur (Brazil, Argentina, Uruguay, Paraguay) should agree a common list of products shielded from the full impact of tariff cuts, and base these "flexibilities" on the trade volume of their biggest member, Brazil.
*New members. The new text drops the proposed grace period for the implementation of tariff cuts for recent members such as China, and changes the extra time proposed for implementation of new members to 3-4 years from 2-5 years. Thus China would have up to 14 years to implement tariff cuts, compared with 10 for other developing countries and 5 for developed members. The text retains a footnote that such new members may be able to seek further favourable treatment than that available to other developing countries.
For full details of the agriculture text, click on: here
For full details of the industrial goods text, click on: here
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