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Last-ditch effort on WTO talks

By NAOMI KOPPEL
The Associated Press

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Developing countries say a draft framework for the World Trade Organization (WTO) treaty does too little to force rich nations to cut their import tariffs and subsidies, while the European Union remains concerned that EU farmers would have to give up more than their U.S. rivals.

The WTO's 147 members have given themselves until the end of the week to agree on the skeleton of the treaty — work that should have been done at the failed WTO ministerial meeting in Cancún, Mexico, last September. Around 30 ministers are in Geneva, along with diplomats from almost all WTO member countries.

If they fail this week, the trade-liberalization negotiations will be still further delayed by months or even years.

Nevertheless, members said they would not sign something they didn't like.

"We cannot sacrifice substance for timing," Argentina's International Trade Secretary Martin Redrado told reporters. "If there is no good substance, Argentina will not go along with it."

Argentina and other members of the Group of 20 developing countries are concerned that the current proposal could allow rich nations to maintain high import duties on many farm goods and that it contains a loophole for the United States to continue subsidizing farmers.

Meanwhile, Switzerland, which heads a group of 10 countries that want to maintain high import tariffs on certain farm goods, said it also needs changes — many of them conflicting with the demands of developing countries.

The European Union has agreed to eliminate all export subsidies on farm products and to make big cuts to other subsidies, but only if the United States, Australia and other rich nations make similar moves. They are concerned that the current proposal is unclear on that.

France on Monday forced agreement that EU trade ministers should consider the final version of the text before allowing EU Trade Commissioner Pascal Lamy to accept it.

WTO Director-General Supachai Panitchpakdi and the chairman of the WTO's ruling General Council, Japanese Ambassador Shotaro Oshima, are working on another draft of their proposal, which they hope to issue today.
 
But it will be an uphill task to find wording that is acceptable to all parties.

Negotiators are under pressure to reach a deal by the end of the month because the November U.S. presidential elections and government changes in other countries will likely put things on hold until at least next year.

Other areas to be covered in the treaty include reducing barriers to trade in manufactured goods and service industries such as telecommunications and banking, and simplifying customs procedures.