Brussels, 14/06/2006 (Agence Europe) - While the 149 member countries of the WTO were redoubling efforts to reach a compromise (before the end of June) on the modalities (figures and other provisions) on lowering custom duties on agriculture and manufactured goods (NAMA), China has stoked up a row at the WTO HQ in Geneva by demanding that it be allowed to preserve higher custom duties than other developing countries. According to sources close to discussions in Geneva, and quoted by AFP, China has in effect used the argument of its recent accession to the WTO (in 2001) to claim special treatment for the 21 most recent member countries of the WTO. The Chinese ambassador to the WTO also requested that Beijing be allowed to apply custom duties that are 50% above those of other developing countries to its imports after the entry into force of a possible agreement concluding the Doha negotiations. Explaining that it had already had to make concessions in negotiating its accession to the multilateral organisation, China also asked for 10% of its tariff lines to be excluded from any cuts in customs duties, instead of the 5% of tariff lines planned for other developing countries. Beijing also wants to be given three extra years for implementing any possible overall agreement.
One of the European Union's diplomats close to the negotiations in Geneva immediately said that accepting any further demands of flexibility of this nature was “out of the question”. Interviewed by EUROPE, Peter Power, the spokesperson for Trade Commissioner Peter Mandelson, said that, “it is almost impossible to envisage China getting adequate support for the approach Beijing is proposing”.
In an interview to Le Monde (see other article) on the role of China in the Doha negotiations, Mr Mandelson said that the emergence of China makes things more problematic, as the country had a competitive edge due to its labour costs. He also said that the country had a phenomenal export capacity and some emerging and developing countries were afraid that opening up the markets would above all be to the benefit of China. The European Commissioner also affirmed that even Brazil, allied to China, South Africa, India and Mexico within the emerging countries of G-20, had expressed strong reservations on Tuesday on Beijing's proposals.