Brussels, 23/03/2006 (Agence Europe) - The Doha Round must be concluded by the end of this year as “the American negotiating brief will not be extended”, WTO Director General Pascal Lamy warned on Thursday when speaking to the members of the European Parliament's Committee on External Trade chaired by Spanish Socialist Enrique Baron. Mr Lamy explained that, in the United States, Republicans are less inclined to have free trade than they were ten years ago and the democrats are more hostile to it now than in the past. “We must therefore not miss this window of opportunity offered by the end 2006 deadline”, he explained in response to German Social Democrat Erika Mann. The former European Trade Commissioner sounded a note of warning, saying one may wonder whether it is normal for a Member State to compel the others to keep up with it, but this does in fact happen. Also, if this deadline is not kept, it will be a serious problem - first of all for the WTO member nations and especially the developing countries that would pay a high price as the organisation is, in some ways, an insurance policy against the law of the strongest practised in bilateral agreements, and then for the WTO itself, as multilateralism would be brought into question. If, during the Hong Kong conference which, he said, was a “modest success”, the 149 WTO trade ministers agreed on the principle of considerably cutting the highest tariffs and taking account of the developing countries' defensive interests (special flexibility for special products and a special safeguard clause), “agriculture nonetheless remains at the core of the talks, as the agricultural sector is still lagging several rounds behind compared to other elements in international trade”, Mr Lamy said. In the run-up to 30 April, the date when WTO partners should have finalised arrangements (figures and other provisions) on agriculture and manufactured goods, “the situation is now well known”: - the European Union, the United States and the emerging G-20 countries must now reach a compromise on reduction of internal farm subsidies, agricultural tariffs and customs duties on manufactured goods. Although some points remain outstanding - such as rules, trade facilitation (which should allow trade flows to be accelerated, mainly in favour of developing countries) and geographic indications (on which “positions remain extremely divergent”) - and if talks on services have really just begun, then “it is no longer parameters but figures (on agricultural goods and NAMA) that we want”, Mr Lamy stressed. He went on to explain that “the key to the figures is in the hands of the triangle formed by these three players”. “Today, we are looking at the simulations that allow the possibilities of all parties to be tested at offensive and defensive levels”, he said, saying that “the time of truth is nigh”. “It is quite clear what must be done: the United States has to make a move on internal subsidies, the G-20 must move on industrial tariffs, but the Union must show proof of flexibility on the figure for reducing its agricultural tariffs as well as on the number of sensitive products to be protected from the generalised fall in customs duties”, the WTO Director General warned. For now, the sum of offers on the table is insufficient and it is necessary to re-grade the figures, not only in terms of market access but also in terms of regulation (on internal subsidies), he said.
When asked by reporters whether it is possible he will himself put forward a compromise text if the three main players are unable to strike a balance between the efforts to be made, Mr Lamy replied: “No, I will not, as I have no secret combination of figures to put on the table and I have neither a monopoly of initiative-taking nor the power to take initiatives”. “Suggestions must come from the WTO members”, he stressed, saying, moreover, that a meeting at ministerial level to finalise an interim agreement on terms and conditions end April would be “necessary”.
During the debate, Belgian Liberal Johan Van Hecke asked how can one break the lack of resolve shown by many member states that do not see any clear interest in having more trade liberalisation and which adopt a defensive attitude. British Green member Caroline Lucas questioned the “single undertaking” principle, the only commitment that requires an overall agreement on several chapters and therefore simultaneous progress in all areas under negotiation (agricultural goods, NAMA and services). “If a principle is to be brought into question, it will be once the Doha cycle has been completed”, Mr Lamy retorted. To the question raised by MEPs as to whether China will also agree to make an effort, Mr Lamy said: “China, too, will have to pay”. “The difference between its consolidated tariffs and its applied tariffs - which is sometimes considerable for India or significant for Brazil - is very small”, he explained before going on to conclude: “Any tariff reduction will therefore involve far more rapid reductions for China on its applied tariffs than for India and Brazil”.