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13898
Sat, 07/26/2008 - 19:36
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https://oananews.org//node/13898
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WTO free trade talks leap ahead toward deal
GENEVA, July 26 Kyodo - The world's seven major trading powers on Friday took a step forward toward striking an outline agreement in the Doha Round of free trade talks, bringing back their ongoing meeting at the World Trade Organization from the brink of collapse, helped by a set of compromise proposals.
''A big progress, I believe,'' Foreign Minister Celso Amorim of Brazil, one of the seven, told reporters at the WTO after five days of tough negotiations, although he added many challenging issues still needed to be tackled.
Amorim said the chance of reaching a deal on so-called modalities, key figures for cuts in tariffs and farm subsidies, has increased to 65 percent from fifty-fifty before the ministerial meeting began Monday.
To salvage the floundering talks, trade and farm ministers from seven key trading heavyweights -- Australia, Brazil, China, the European Union, India, Japan and the United States -- held their exclusive meeting again on Friday afternoon.
Their discussions proceeded based on a paper containing a set of compromise proposals, mapped out earlier this week by WTO Director General Pascal Lamy, delegates said.
The small-group meeting generated ''very encouraging signs of progress'' and ''interesting ideas,'' according to WTO chief spokesman Keith Rockwell.
To bring the seven parties' latest considerations to a wider framework, the seven later in the day held a meeting with about 25 other trading powers at the WTO.
The proposal paper was reviewed by them all, the delegates said.
With the reinvigorated momentum, more than 30 ministers, ncluding those from the seven major trading partners, are likely to continue their discussions until early next week, the WTO said.
''We have a tentative agreement on a path forward,'' U.S. Trade Representative Susan Schwab said.
But she also said the ''biggest concern we have is that a handful of large emerging markets threaten this round for the rest of us,'' urging them to make more compromises for the successful conclusion of the final modalities package.
The WTO said there will be a ''signaling meeting'' for services trade, a process in which ministers present respective provisional offers, on Saturday afternoon. The meeting was initially scheduled Thursday.
Then, from Sunday, the ministers will likely go back to discussions on how to lower trade barriers of agriculture and industrial issues, it added.
One of Lamy's proposals is to ask trading powers to protect only 4 percent of all farm products from sharp tariff cuts, according to a copy of the paper obtained by Kyodo News.
Japan's so-called ''sensitive products,'' being shielded from high tariff cuts, include rice, sugar and wheat.
Japanese farm minister Masatoshi Wakabayashi has said in Geneva that Tokyo wants at least 8 percent of all farm products to be exempted from steep tariff cuts.
Although Japan and other parties are not pleased with many of the proposals, Akira Amari, Japan's economy, trade and industry minister, said that he saw ''a great progress'' in Friday's meeting if it is seen from a broader perspective.
The proposal paper calls on the United States to lower its cap on farm subsidies to $14.5 billion.
A substantial cut in U.S. farm subsidies is seen as a crucial factor to prompt developing economies to make concessions on market access for nonfarm products.
The United States said Tuesday it is ready to limit farm subsidies to $15 billion a year.
The latest WTO text serving as the basis for farm talks requires Washington to cut its trade-distorting farm subsidies to a range of $13 billion to $16.4 billion a year from the current limit of $48.2 billion.
It is very uncertain whether developing countries will be satisfied even if the United States accepts the proposed $14.5 billion cap.
The U.S. government data shows that the amount of U.S. farm subsidies in 2007 was estimated to be around between $7 and $8 billion as farmers now require less assistance on the back of increased income helped by soaring commodity prices.
The paper also includes a cut by 70 percent in tariffs of over 75 percent on agricultural products currently imposed by rich countries.
As for non-farm sectors, among many requests, the paper states a figure of 8 for developed countries and a figure ranging 20 to 25 for developing countries as coefficients for calculating tariff cuts. The coefficient represents the tariff cap and the cut will be bigger if the number is smaller.
On Friday morning, Lamy warned negotiators that the situation was ''edging between success and failure.'' Lamy was quoted as saying that ''Time is running out and the next 24 hours are crucial.''The Doha Round of talks, launched in November 2001 in the Qatari capital, have been deadlocked chiefly due to a row between developed and developing economies on how to lower tariff barriers in the politically sensitive agricultural and industrial sectors.
Indian Commerce and Industry Minister Kamal Nath, a key player for developing countries, declared again earlier Friday that the onus is on rich countries to reduce trade barriers before asking poor countries to do the same.
The successful completion of the Doha Round ''depends on how much the United States and Europe want to do. How much distortions developed countries want to reduce,'' he said.
''A big progress, I believe,'' Foreign Minister Celso Amorim of Brazil, one of the seven, told reporters at the WTO after five days of tough negotiations, although he added many challenging issues still needed to be tackled.
Amorim said the chance of reaching a deal on so-called modalities, key figures for cuts in tariffs and farm subsidies, has increased to 65 percent from fifty-fifty before the ministerial meeting began Monday.
To salvage the floundering talks, trade and farm ministers from seven key trading heavyweights -- Australia, Brazil, China, the European Union, India, Japan and the United States -- held their exclusive meeting again on Friday afternoon.
Their discussions proceeded based on a paper containing a set of compromise proposals, mapped out earlier this week by WTO Director General Pascal Lamy, delegates said.
The small-group meeting generated ''very encouraging signs of progress'' and ''interesting ideas,'' according to WTO chief spokesman Keith Rockwell.
To bring the seven parties' latest considerations to a wider framework, the seven later in the day held a meeting with about 25 other trading powers at the WTO.
The proposal paper was reviewed by them all, the delegates said.
With the reinvigorated momentum, more than 30 ministers, ncluding those from the seven major trading partners, are likely to continue their discussions until early next week, the WTO said.
''We have a tentative agreement on a path forward,'' U.S. Trade Representative Susan Schwab said.
But she also said the ''biggest concern we have is that a handful of large emerging markets threaten this round for the rest of us,'' urging them to make more compromises for the successful conclusion of the final modalities package.
The WTO said there will be a ''signaling meeting'' for services trade, a process in which ministers present respective provisional offers, on Saturday afternoon. The meeting was initially scheduled Thursday.
Then, from Sunday, the ministers will likely go back to discussions on how to lower trade barriers of agriculture and industrial issues, it added.
One of Lamy's proposals is to ask trading powers to protect only 4 percent of all farm products from sharp tariff cuts, according to a copy of the paper obtained by Kyodo News.
Japan's so-called ''sensitive products,'' being shielded from high tariff cuts, include rice, sugar and wheat.
Japanese farm minister Masatoshi Wakabayashi has said in Geneva that Tokyo wants at least 8 percent of all farm products to be exempted from steep tariff cuts.
Although Japan and other parties are not pleased with many of the proposals, Akira Amari, Japan's economy, trade and industry minister, said that he saw ''a great progress'' in Friday's meeting if it is seen from a broader perspective.
The proposal paper calls on the United States to lower its cap on farm subsidies to $14.5 billion.
A substantial cut in U.S. farm subsidies is seen as a crucial factor to prompt developing economies to make concessions on market access for nonfarm products.
The United States said Tuesday it is ready to limit farm subsidies to $15 billion a year.
The latest WTO text serving as the basis for farm talks requires Washington to cut its trade-distorting farm subsidies to a range of $13 billion to $16.4 billion a year from the current limit of $48.2 billion.
It is very uncertain whether developing countries will be satisfied even if the United States accepts the proposed $14.5 billion cap.
The U.S. government data shows that the amount of U.S. farm subsidies in 2007 was estimated to be around between $7 and $8 billion as farmers now require less assistance on the back of increased income helped by soaring commodity prices.
The paper also includes a cut by 70 percent in tariffs of over 75 percent on agricultural products currently imposed by rich countries.
As for non-farm sectors, among many requests, the paper states a figure of 8 for developed countries and a figure ranging 20 to 25 for developing countries as coefficients for calculating tariff cuts. The coefficient represents the tariff cap and the cut will be bigger if the number is smaller.
On Friday morning, Lamy warned negotiators that the situation was ''edging between success and failure.'' Lamy was quoted as saying that ''Time is running out and the next 24 hours are crucial.''The Doha Round of talks, launched in November 2001 in the Qatari capital, have been deadlocked chiefly due to a row between developed and developing economies on how to lower tariff barriers in the politically sensitive agricultural and industrial sectors.
Indian Commerce and Industry Minister Kamal Nath, a key player for developing countries, declared again earlier Friday that the onus is on rich countries to reduce trade barriers before asking poor countries to do the same.
The successful completion of the Doha Round ''depends on how much the United States and Europe want to do. How much distortions developed countries want to reduce,'' he said.
