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November 18, 2008 Tuesday
Updated
Nov 18, 2008
WTO diplomats urge for trade deal

GENEVA - TRADE negotiators will step up work for a new global pact following a call from the weekend G-20 summit but have not agreed a date for ministers to come to Geneva to seek a breakthrough, diplomats said on Monday.

Leaders of the G-20 group of major rich and emerging economies agreed on Saturday to try to approve the outlines of a new accord in the World Trade Organisation's (WTO) Doha round by the end of the year as part of efforts to deal with the worst financial crisis since the 1930s.

But a meeting of about 30 WTO ambassadors agreed negotiators must still narrow the gap on technical issues before trade ministers can follow up that clear political signal with any chance of success.

'We begin the acceleration straight away and let's see where we get to,' said Australia's WTO ambassador, Mr Bruce Gosper, who chairs the WTO's policy-making General Council.

WTO Director-General Pascal Lamy will review the progress of talks again on Sunday to decide the next steps.

But at another meeting to discuss agriculture, none of the G-20 countries indicated how they would show flexibility to help bring about a deal, the mediator for the farm talks, New Zealand's WTO ambassador Crawford Falconer, told reporters.

Mr Falconer said WTO members were not ready to resume work on farm talks this week, even though the G-20 call implied that substantive changes in members' positions must be agreed over the next two weeks to give ministers time to prepare a meeting.

'If they had the political will that their leaders have indicated then they could do this in an afternoon,' he said.

Mr Falconer said he was inviting members to a meeting on Friday to explain how they would shift their positions.

At stake is a deal that could send a signal of confidence to businesses battered by the global credit crunch, by freeing up trade in food, manufactured goods like cars and clothing and in services like banking and telecoms.

An agreement would have to be approved by all the WTO's 153 members.

In Washington, US Trade Representative Susan Schwab told the Republican group Club for Growth she believed the G-20 statement was 'quite different' from past declarations that have not translated into progress at the negotiating table.

'What is unique about this is you have the major emerging markets, China, Brazil, others, saying they are prepared - at least at that political level - to make concessions ... to try to make the Doha round move forward,' like developed countries have been expected to do, Ms Schwab said.

A TRILLION DOLLARS OF TRADE

A study published on Friday by the International Food Policy Research Institute said that failure to complete the Doha round could put more than US$1 trillion (S$1.53 trillion) in world trade at risk.

The Doha round was launched in the Qatari capital seven years ago to free up world trade by cutting farm subsidies, and tariffs on agricultural and industrial goods, with a clear mandate to help developing countries.

But it has hit deadlock amid differences between rich and poor nations and exporters and importers.

A meeting of ministers in July came surprisingly close to a breakthrough, but faltered after nine days on differences between the United States and India over measures to safeguard subsistence farmers in poor countries from a surge in imports.

Despite renewed negotiations among experts and diplomats since September, many of these differences persist.

Indian Trade Minister Kamal Nath said on Monday his country would not compromise on sensitive issues like farm safeguards.

A South African diplomat said developed countries would have to budge both from what they were willing to offer and what they were demanding from emerging countries to secure a deal.

'We are willing to work for it provided the developed countries translate the political signals in Washington into some concrete flexibilities,' Mr Faizel Ismail, who heads South Africa's WTO delegation, told reporters after the WTO meeting.

But other developing countries expressed confidence that the outlines of a trade deal, known in the jargon as modalities, could be reached next month.

'Now we have an opportunity and we will have to take it.'

'I'm optimistic on having modalities by year's end,' Mexican WTO ambassador Fernando de Mateo Venturini said.

Mr Mateo said the coming talks would focus on the core areas of agriculture and industrial goods. The outlines of a deal on services, on which he chairs negotiations, were completed in July except for agreeing a deadline for final offers, he said.

Any meeting of ministers would have to take place before Dec 19, when the WTO holds its last general council meeting before closing for the Christmas break, diplomats said.

Before that meeting could take place, WTO mediators for the agriculture and industry talks would need to update the negotiating texts they issued in July, as the basis for a deal. -- REUTERS

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