Brussels, 11/06/2007 (Agence Europe) - On the eve of the G4 (EU, United States, Brazil and India) ministerial meeting - which could be decisive for the future of the Doha Round - in Potsdam from 19-22 June, G8 leaders, meeting in Heiligendamm on 6-8 June, restated their commitment to an “ambitious (and) balanced agreement” on the Doha talks. Taking note of the statement by the G6 (G4 plus Australia and Japan) on 12 April of this year which underlined their belief that, “by intensifying their work, convergence can be reached and thus contribute to concluding the Round by the end of 2007”, G8 leaders called on WTO members to demonstrate “constructive flexibility” to bring the talks to a successful conclusion as quickly as possible. “We urge ministers in charge of trade, in particular from leading developed countries and major emerging economies, to provide in the coming weeks a solid platform for a multilateral negotiation leading to an agreement on modalities” (for trade liberalisation), they added, before restating their commitment to “the development dimension of the DDA” (Doha Development Agenda).
Behind the outward show of this declaration, however, there does not seem to be much optimism and flexibility among the leaders of the eight world powers. On Thursday, US President George W. Bush said, in alarmist terms, that it would be very difficult to reach agreement. His French counterpart, Nicolas Sarkozy, once again showed great firmness. During his bilateral meeting with Mr Bush, he gave warning that he would “vigorously defend the interests of the French economy, its farmers and its businesses in WTO talks”. “Agreement should not be made to the detriment of some and the benefit of others. I am calling for reciprocity and an end to naivety,” he added.
WTO Director General Pascal Lamy, who was invited to Heiligendamm, said he thought that an “interim agreement which would pave the way for a final agreement in six to nine months” was close, with, he said, the positions having come closer to one another. “The components of this interim agreement were identified long ago,” he said, and he cited, “the amount of the reductions in trade-distorting agricultural subsidies; the amount of the reductions in agricultural tariffs and in industrial tariffs” which were, he felt, “the most politically sensitive subjects” in both the G8 countries and the major emerging countries of South Africa, Brazil, China, India and Mexico. An interim compromise would require efforts and concessions from everyone, Mr Lamy went on, and he called for additional political effort. “What I am asking you to do is to avoid weighing out the final concessions on an apothecary's weight-balance, and to focus on the overall world economic landscape and on the enormous risks involved in failure,” he added, assessing the extra effort needed to conclude the Round at “a few billion dollars or euros”. (eh)