WTO chief calls on Japan to be more active in free trade talks

GENEVA, Feb. 19 Kyodo - World Trade Organization chief Pascal Lamy says he is counting on Japan to be
more active toward a successful conclusion of the Doha Round of global trade
talks, amid mounting concerns over protectionism in the wake of the economic
crisis.
WTO Director General Lamy, in an exclusive interview with Kyodo News on
Wednesday, suggested that Japan compromise on the issue of market access for
farm products as the world's second-largest economy has been one of the biggest
beneficiaries of the open multilateral trading system.
''If you look at the package that is on the table, it is a very good package
for Japan,'' Lamy said at the WTO headquarters in Geneva. ''Industrial tariffs
will be reduced by 60 percent in developed countries and 50 percent in emerging
countries...there is a price to pay in agriculture.''
Under the latest WTO proposals, rich countries are basically allowed to
designate up to 4 percent of products as ''sensitive'' to protect them from
steep tariff cuts.
Japan has sought at least 8 percent of all farm products to be treated as such.
Lamy said he knows agriculture is ''a very sensitive topic for Japan'' but what
is on the table now has ''many sensitivities'' also for all players, both
developed and developing.
Still, he indicated there may still be room for Japan to negotiate on how to
treat politically sensitive farm products if it is prepared to concede in other
areas.
''We know that Japan is asking for more,'' said Lamy, who will make a three-day
visit to Japan from next Tuesday. ''The question is what is the price that
Japan is ready to pay to have more than the normal.''
''If you want more there, you cannot ask for more everywhere,'' he said. ''You
have to make a choice at the end of the day between the various clusters of the
negotiations'' -- which have repeatedly stalled since their inception in
Qatar's capital in 2001.
The most recent failure was seen when the WTO had to cancel a ministerial
meeting in December, although many world leaders had tried to make another
attempt to hammer out an outline deal by the end of 2008 as a way to restore
confidence in the world economy, battered by the financial crisis.
The cancellation was due mainly to disagreements between the United States and
emerging heavyweights, such as China and India, over how to lower trade
barriers in farm and manufactured goods.
In reference to the deepening economic crisis, Lamy urged that Japan play a
bigger role in fighting emerging protectionist threats.
He said, ''It seems obvious that the interest of Japan is to help us all
fighting protectionist (pressures),'' which would hit the country's economy
most in the world given its heavy reliance on exports.
''Japan has a specific stake in making sure that trade remains open during the
crisis,'' Lamy said.
''Anti-protectionism is not a question of religious faith, it is not a question
of ideology, it is not a question of philosophy,'' he said. ''It is a simple
question that (protectionism) does not work.''
''If you protect your imports, somebody will hit your exports. It is as simple
as that,'' he said, adding, ''This notion that imports are the problem and
exports are the solution does not make any sense.''
Lamy warned that there will be a vicious circle of worsening economic
conditions if global trade is to be obstructed.
''We saw that in the 1930s,'' he said.
On the likelihood of convening any ministerial meeting in the near future, Lamy
said, ''It would be premature to take any stance on this'' as WTO members are
recently dealing with a range of issues at a technical level and the new U.S.
administration needs to have more time to review its options on global trade
policies.
During his visit next week to Japan, the WTO chief is scheduled to hold talks
with Foreign Minister Hirofumi Nakasone, Economy, Trade and Industry Minister
Toshihiro Nikai, and Agriculture, Forestry and Fisheries Minister Shigeru
Ishiba.
==Kyodo