Brussels/Geneva, 30/05/2003 (Agence Europe) - The 147 countries of the World Trade Organisation (WTO) will not meet on 31 May, date on which they had hoped set the terms for the negotiations over market access for industrial products in the framework of the Doha Development Agenda (DDA).
'We missed the deadline,' noted the Swiss Ambassador Pierre-Louis Girard, on Wednesday, when closing three days of talks concerning the proposals he had submitted for initial reactions - in this case highly divided - from the delegates. So what?, he added, recalling that the deadline agreed in Doha was only indicative or rather an incentive, the aim being to structure the talks in view of achieving progress. The true problem, he said, is that much work remains to be done. Delegates still want to consult the governments and the governments want to consult industry, summarises a source close to the talks, which will continue in July and then in August, in Geneva. With regards to this chapter of the DDA, as with agriculture, access for developing countries to vital medicines, the implementation of the existing undertakings, the terms for the special and differentiated treatment promised to them and the liberalisation of the services market, also the objects of failed deadlines in the round launched last year, the target for negotiators is now that of Cancun where the WTO hopes to at least agree on basic elements of the terms, namely the formula, the principals and aims, as well as the tariff reductions to be agreed upon for the exportation of non-agricultural products.
For the time being, the 147 remain fundamentally divided by the gap that the Girard document tried to bridge (see EUROPE of 24 May, p. 14). For some, the developing countries and Japan, these proposals go too far, while for others, the United States leading, they fail due to a lack of ambition. It is an instrument kit to more or less achieve a valid formula for the reduction of tariffs and the elements are nearly all there to respect the Doha mandate, say the Americans on the initiative of the New Zealanders. Alongside, Canada and other industrial powers, as well as Singapore, Washington is nevertheless disappointed, given the limited number of sectors targeted by total tariff elimination (in this case 7) and wants an extension of this sector based approach to chemical, forestry and environmental products. Most of the poor countries disagree. The formula envisaged leads to excessively drastic reductions and the tariff elimination covers, politically, economically, social and even culturally sensitive sectors, say Morocco, on behalf of the group of African countries, the most recent in the face of the bold moves demanded by the rich countries. Among the ACP, Mauritius is even bolder: we cannot accept tariff elimination, indicated his delegate, while underlining the adverse effect that this would have in terms of erosion of preferential access enjoyed by some LDC in Europe, among others. Japan also categorically opposes tariff elimination, but only for such sensitive products for the country as electronics, shoes and leather products, which are presently protected by significant customs duties. Some favour, a voluntary tariff elimination, similar to those already implemented for information technologies. This is notably the case for India and Brazil who interpret the Doha Declaration as stipulating that LCDs will not have to initiate clear cuts in their tariff barriers. The Europeans assert, as for them, that the Swiss formula adopted by Mr Girard is better than the others, but risks leading to inequalities in the system because the most advanced LCD markets will remain protected through a high average tariff system, which their own proposal would avoid. Nevertheless they feel that the 147, including the LCD, should make binding tariff undertakings otherwise it will be difficult to sell this to our industry, they noted in Geneva. Leaving tariffs unconsolidated is crucial for development policies in the poor countries, replied the Malaysian delegate. Contributions are now expected in Geneva for next 9, 10 and 11 July