Committed to PEOPLE'S RIGHT TO KNOW
Vol. 4 Num 187 Thu. December 04, 2003  
   
Business


World trade talks struggle as deadline looms


Efforts to get World Trade Organisation (WTO) talks back on track are making scant progress and there seems little chance of meeting a December 15 deadline for a resumption, trade sources said Tuesday.

Trade envoys in Geneva have been struggling to pick up the pieces of the WTO's Doha Round of free trade negotiations ever since ministerial talks collapsed in disarray in Cancun, Mexico, in mid-September.

In the latest sign of problems, Uruguay's WTO ambassador Carlos Perez del Castillo, who has been coordinating the bid, postponed a preparatory meeting of all the trade body's 146 member states from December 5 to December 9 to give himself more time for behind-the-scenes discussions.

The meeting will be the last before senior government officials gather on December 15 for what could be a decisive moment for the trade round, which aims to boost the world economy by lowering barriers to business in goods and services.

Before leaving Cancun, ministers set the date for the senior officials' get-together in the hope that it could succeed where they had failed in reaching an outline agreement on some of the toughest topics, including reforming world farm trade.

"I reckon that this is just another sign that the 15th is not going to produce anything," said on trade envoy, referring to the postponement. "And it is a shame."

Trade envoys said Perez del Castillo's consultations with small groups of member states had failed to bridge the big gaps, particularly over agriculture where poorer states and farm goods exporters like Australia want deep cuts in big power subsidies.

On some questions, for example tariffs on industrial goods, the gap between what richer states wanted and what developing nations were prepared to give even appeared to have widened.

Some envoys blamed the impasse on a lack of urgency on the part of the European Union, which is still finalising a review of its negotiating position after the Cancun debacle.

"The whole timeframe is being unduly influenced by the Europeans," said one Latin American envoy.

With the chances receding of any significant agreements in December, Perez del Castillo appeared likely to go for "plan B" which could involve a commitment to resume the work of the various WTO negotiating bodies in February, trade sources said.