Developing countries vowed Monday to stand their ground on key principles in deadlocked global trade talks, a week before four World Trade Organization (WTO) powers are to make yet another bid to unlock the negotiations.
Mondays encounter at the WTO in Geneva involved about 100 representatives from the G20 group of developing and emerging nations in the WTO, as well as members of other developing nation groups.
The G4 meeting of ministers from Brazil, the European Union, India and the US in Potsdam, Germany next week (19 – 23 June) is due to make another attempt to unlock the floundering five year-old WTO talks.
An agreement among them on the concessions needed to reduce barriers to trade in agriculture, industrial goods and services is regarded as essential to draw in the rest of the 150 members.
Indian Trade Minister Kamal Nath underlined that the Doha Round was aimed primarily at using trade to help poor countries.
The G20 bloc of developing countries said US spending on overall trade-distorting support should not be allowed to rise much above its current level, estimated at around 11 billion US dollar last year.
The G33, which includes several countries that depend on subsistence agriculture, further argued that any WTO deal on boosting trade flows must include measures to combat poverty.
Diplomats see progress in Potsdam as critical to reviving the talks, which could otherwise be put on hold for years.
Brazil and India challenged the US on Monday to offer “real” cuts in the amount of subsidies paid out to American farmers or risk another setback in the WTO’s long-suffering round of global commerce talks.
In a statement Monday, developing countries said a “low-teen” number for US farm subsidies, which they interpret to include levels as low as 10 billion dollar, would reflect a “commitment to real and effective cuts” and is the “only possible outcome”.
Trade officials attending Mondays meeting said Brazil and India were seeking to persuade fellow developing countries to give them more flexibility on industrial tariffs ahead of the Potsdam talks with the US and the EU.
Kilde: www.worldbank.org
