WTO Talks Collapse in Geneva Between the Wealthy and the Poor

WTO Talks Collapse in Geneva Between the Wealthy and the Poor

ccun.org, July 29, 2008, 4:45 pm ET

Aljazeera tv reported that the WTO talks in Geneva collapsed after nine difficult days of talks. The developed wealthy nations of the northern hemisphere could not impose trade conditions on the developing poor nations of the southern hemisphere.

Basically, wealthy nations want to keep paying subsidies to their farmers while forcing poor nations not to provide such subsidies to their own farmers. Moreover, wealthy nations want to keep the current tariffs on imported food products while demanding that poor nations relinquish such tariffs.

After the failure of the talks between the two camps, there are indicators that wealthy nations are going to lure China and India out of the southern hemisphere camp by giving them special treatment. Representatives of the two nations clashed with the US representatives openly, which was the straw that broke the talks back.

If the US-led efforts can dissuade India and China and instead to get them out of the camp of the developing nations, then poor nations of the southern hemisphere will be like what they have been throughout the previous two centuries, a fair game in the new world order of neo-colonialism.

China dismisses developed nations' accusations in WTO talks as "groundless"

www.chinaview.cn 2008-07-29 19:12:04

·Chinese delegation dismissed as "groundless" the accusations made by some developed countries. ·Developed countries need to fully understand the core concerns of developing nations. ·On industrial liberalization, related parties should abide by principle of participation on willingness.

GENEVA, July 28 (Xinhua) --

The Chinese delegation on Monday dismissed as "groundless" the accusations made by some developed countries regarding China's position in the ongoing Doha Round of trade talks here.

The rebuttal came after some major developed countries said the current deadlock should be attributed to China's demand for sheltering sensitive agriculture goods like cotton, rice and sugar from deep tariff cut and its reservation over sectorial liberalization.

The Chinese have dismissed the charges as "groundless."

Responding to the criticism, China's Commerce Minister and head of its delegation to the Doha Round, Chen Deming, said major developed countries were the biggest beneficiaries of the talks as they set aside a large space for farm subsidies.

Developed countries need to fully understand the core concerns of developing nations and should not hinder the settlement of these problems, said Chen.

On industrial liberalization, he said the related parties should abide by the principle of participation on willingness.

Many countries such as India, Indonesia, Venezuela and Saudi Arabia have voiced support for the Chinese stance.

Ministers from over 30 major WTO member states have been engaged in crucial trade talks here since last Monday, aimed at bridging lingering divergences on farming and industrial sectors in a bid to wrap up the long-stalled Doha Round this year.

WTO Director-General Pascal Lamy on Wednesday invited ministers from China, the United States, the European Union, Japan, Australia, India and Brazil to hold small-scale consultations.

Though convergence was observed in the past week of talks, an agreement is still far from being reached as a series of disputes remain unresolved and could undermine the perceived progress.

Chen appealed to all parties, especially the developed countries, to assume responsibility and strive to seek a compromise proposal acceptable to all.

The small-scale ministerial meeting was originally scheduled to end Saturday, but it has been postponed until at least Tuesday or Wednesday, due to sharp differences.

Mandelson warns global trade talks in appalling prospect of failure

www.chinaview.cn 2008-07-29 20:48:24

GENEVA, July 29 (Xinhua) --

European Union (EU) Trade Commissioner Peter Mandelson warned Tuesday that a crucial bid for a new global trade deal was in appalling prospect of failure as the talks dragged into the ninth day.

"If people want this deal, there is no better deal coming along and you have to consider if this fails what they would lose," Mandelson told reporters on his arrival for a meeting with his counterparts from the members of the World Trade Organization (WTO).

Ministers from over 30 major WTO members have been negotiating since last Monday to bridge lingering differences on agriculture and industrial goods, a key bid to wrap up the long-stalled Doha Round of global trade talks this year.

The ministerial negotiation had been scheduled to end Saturday but had to be prolonged into the second week since developing and developed countries continued to clash over a series of issues.

A key dispute now, which sent the talks into a tense atmosphere Monday, was between the United States and India concerning the so-called special safeguard mechanism, a measure for developing countries to increase tariffs to protect their domestic farming incase of import surges.

India is demanding for more flexibility to trigger the mechanism, which was strongly opposed by the U.S. An overnight meeting among the seven key WTO members, namely the U.S., the EU, Japan, Australia, Indian, Brazil and China, ended without any progress.

Mandelson urged both the U.S. and India to show flexibility to avoid an appalling prospect of failure.

"The compromise has to come from both sides who are involved. It means U.S. and India principally and other developing countries," he said.

"If they do not demonstrate the will to compromise, then I am afraid the deal will go down, it is as an appalling prospect as that," the EU trade chief warned.

Editor: Sun Yunlong

Emerging economies rebuffs U.S. blame in WTO trade talks

www.chinaview.cn 2008-07-29 02:21:31

GENEVA, July 28 (Xinhua) --

India and China on Monday rebuffed accusation made by the United States that the two emerging economies were blocking a key negotiation here for a breakthrough in the Doha Round of global trade talks.

"She said some large emerging countries are the problems. We are large, I can say that. We are emerging," India's Commerce Minister Kamal Nath told reporters, referring to U.S. Trade Representative Susan Schwab.

Schwab made a blunt attack earlier Monday on India and China, accusing the two emerging countries of standing in the way of negotiations.

"We are very much concerned about the direction that a couple of countries are taking," Schwab said.

She said one party was against an agreement worked out on Friday night by a majority of the seven trading powers, namely the U.S., the European Union (EU), Japan, Australia, India, Brazil and China, while another was now "backtracking" on an earlier commitment.

"I am very concerned it will jeopardize the outcome of this round," she told reporters.

The group of seven leading trade powers reportedly found common ground after marathon talks into Friday night, which saved the talks from collapse.

However, Nath said India had not agreed to the so-called Friday package, with concerns remaining on trade-distorting farm subsidies applied by the United States and the EU.

"Developed countries are asking for flexibilities for commercial interests. Developing countries are looking to protect the poor and for provisions that will help them out of poverty, while developed countries are looking for provisions which will lead to greater prosperity," Nath said.

Nath insisted India would not give up efforts to seek a compromised deal and he was "still optimistic."

"The good news is that we are continuing to negotiate," he said.

China also rejected the U.S. blame, urging the world's largest economy to show flexibility instead of threatening developing countries.

"We have tried very hard to contribute to the success of the round," the Chinese ambassador to the WTO Sun Zhenyu told delegates. "It is a little bit surprising that at this time the U.S. started this finger-pointing."

"They have to remember that this is a Development Round. If they cover all their sensitivities for themselves, and keep on putting threats on developing countries, I think we are going nowhere," he said.

Editor: Yan Liang

WTO chief in new push for trade deal with new text

www.chinaview.cn 2008-07-28 22:53:43

GENEVA, July 28 (Xinhua) --

The World Trade Organization (WTO) Director-General Pascal Lamy is tabling a new compromised text today to push for a deal on global trade talks, his spokesman said Monday.

"We are going to put out the text because there has been an enormous amount of convergence in recent days on a large number of areas," WTO spokesman Keith Rockwell told reporters at a briefing.

Ministers from over 30 major WTO member states have been engaged in crucial trade talks since last Monday, aimed at bridging lingering divergences on farm and industrial sectors to wrap up the long-stalled Doha Round this year.

Though convergence was observed in the past week of talks, an agreement was still far from being reached as a series of disputes remained unresolved and could undermine the perceived progress.

Rockwell said the new text, which would be presented to all 153WTO members had certain controversial sections in blank.

"You should be aware in advance that there will be sections to this text (that) will be blank," he said. "On issue where there is no convergence now, we are going to leave the issues blank."

Rockwell listed cotton, special safeguard mechanisms, creation of new tariff-free quotas, specific problems for some individual countries including South Africa and Venezuela as some of the issues remaining on the table.

The Doha Round, officially launched in 2001, had been deadlocked in the past seven years mainly due to divergences between developing and developed countries over agricultural and non-agricultural market access.

Friday saw a tentative breakthrough in the two areas after the negotiations had been on the verge of collapse, but talks during the weekend were clouded by new disputes between developing countries led by India and developed countries.

India is demanding more flexibility under the so-called special safeguard mechanism, which would allow developing countries to raise agricultural tariffs to protect domestic farmers in the event of an import surge.

And a row over bananas between the European Union (EU), the African, Caribbean and Pacific (ACP) countries and Latin America is also threatening the delicate quest for a balanced deal, diplomats said.

"What is important to be taken into account now is that there has been enormous convergence in the last few days and what is on the table is very substantial," Rockwell quoted Lamy as saying to the delegates.

"There is a great deal of convergence, but I hasten to add nothing is agreed until everything is agreed," Lamy said, "In some cases, we have virtual agreements, but members are withholding final consensus approval until they see how things emerge elsewhere."

Lamy urged delegates to step up efforts toward compromises after the talks, originally scheduled to end Saturday, dragged into the second week.

"We now have questions of hours because the clock is against us," he said. "This is the moment to show the flexibility necessary to close the deal on remaining issues."

Rockwell said there was no deadline for the ongoing talks, bad news for delegates and journalists, who worry about whether they have brought enough shirts and ties to Geneva.

The delay had forced delegates and journalists to cancel their flights and rush to find places for their extended stays.

"For this meeting now, we do not have a deadline," Rockwell said.

Editor: Yan Liang

Roundup: Key WTO talks drags on, with no deadline in sight

www.chinaview.cn 2008-07-28 21:42:49

GENEVA, July 28 (Xinhua) --

Negotiators from over 30 major members of the World Trade Organization (WTO) started their second week of bargaining Monday in a bid to salvage a global trade pact, but no deadline is in sight.

"For this meeting now, we do not have a deadline," WTO spokesman Keith Rockwell told reporters at a briefing, after the past full week of painstaking negotiations produced no miracle in seeking a breakthrough in the long-stalled Doha Round of global trade talks.

Friday saw a tentative breakthrough in deadlocked talks on farming and industrial products after the negotiations had come to the brink of collapse.

However, talks during the weekend were clouded by new disputes between developing countries led by India and developed countries.

India is demanding more flexibility under the so-called special safeguard mechanism (SSM), which would allow developing countries to raise agriculture tariffs to protect domestic farmers in the event of an import surge.

And a long-standing dispute on bananas between the European Union (EU), the African, Caribbean and Pacific (ACP) countries and Latin America is also threatening the delicate quest for a balanced deal, diplomats said.

The meeting had been scheduled to end by Saturday. The protraction forced delegates and journalists to cancel their flights and rush to find places for their extended stays.

With no deadline in sight, many worried whether they have brought enough shirts and ties to Geneva.

The meeting among 30-plus major WTO members, which began last Monday and had been prolonged into this week, was billed as the last chance to help wrap up the Doha Round. Any failure this time would mean another delay of several years.

The Doha Round, officially launched in 2001, had been deadlocked in the past seven years mainly due to differences between the developing and developed countries over agriculture and non-agricultural market access.

Editor: Gao

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