Brussels, 21/05/2007 (Agence Europe) - After two days of intense dialogue behind closed doors in Brussels, Trade Commissioner Peter Mandelson, the US representative for trade, Susan Schwab, the head of Brazilian diplomacy, Celso Amorim and the Indian minister for trade, Kamal Nath went their separate ways after failing to reach the very much sought after compromise on modalities (figures and other provisions) on the liberalisation of trade in agriculture and industrial products (NAMA). In a joint declaration they underlined: “Our meetings were productive and included discussions in all the core negotiating areas with a particular focus on agriculture, NAMA and services”. On Friday, G4 ministers also held an exchange of views with the president of the agricultural negotiating committee, Crawford Falconer from New Zealand, author of the first, and much criticised, draft on agriculture (EUROPE 9422) for which a new version is expected out in the second half of June. G4 ministers also held an exchange of views with the president of the committee on NAMA, Don Stephenson from Canada. The latter would prefer to have a convergence of views on the agriculture chapter before putting a draft compromise on the table on reduced customs duties on industrial products (EUROPE 9423). G4 ministers concluded: “We remain committed and hopeful that our efforts, coupled with the work being done at the multilateral level in Geneva, will lead to a successful conclusion of the Round by the end of this year”. G4 ministers will be meeting in London again on 10 June and then during the week of 14 June.
The significant increase in consultation meetings since April has therefore not led to G4 countries finding a rapprochement of views. Judging that prospects for opening up the markets (market access, 3rd pillar of the agriculture chapter) by their partners did not at this stage justify new concessions, the USA has still effectively not come up with a new proposal for reducing their agricultural subsidies (domestic support, 1st pillar). At the head of the group of emerging countries in the G20, India is refusing to open up its markets to US agricultural products that still receive significant subsidies. India is a particular target of Washington and it also wants the Union to put a stop to its superlatively high agricultural duties.
Although a compromise between G4 members is a preliminary prerequisite for an overall agreement, pressure is mounting on Pascal Lamy to make the formula for negotiations in Geneva more multilateral. During the meeting of OECD trade ministers last Wednesday in Paris, the director general of the WTO said that “negotiations are not blocked, they are advancing” but he did acknowledge that this was being done at a slow pace. Time is moving on: the Trade Promotion Authority, the trade mandate for the US government, granted by Congress, expires at the end of June. After this date the US government will no longer have the same scope for signing an agreement and will probably have to wait until the election of George W. Bush's successor to resume and complete negotiations. (eh)