Brussels, 12/06/2007 (Agence Europe) - At the initiative of the G20 emerging countries headed by Brazil, China and India, the developing world showed proof of solidarity on Monday in Geneva where about ten G20 trade ministers met with their counterparts who coordinate the other groups of developing countries: - the “friends of special products” (G33) and the African Union, the ACP countries, the least developed countries (LDC) and the small and vulnerable economies grouped within the G90. The aim of the meeting was clearly to coordinate the positions of the developing world in the run-up to the ministerial meeting of G4 countries (EU, USA, Brazil and India) which, on 19-22 June in Potsdam, will seek to reach a long-awaited compromise on the modalities of trade liberalisation in agriculture and manufactured goods. “We shall be entering a critical phase in the talks and we must manage to correct the most serious trade distortions”, Celso Amorin of Brazil told press after the meeting. “But we are not willing to sacrifice our fundamental positions simply to get a rapid result”, he added. “This moment is crucial for concluding the Doha Round”, added his Indian counterpart, Kamal Nath. “We are united in our determination to achieve the objectives of this development round whose content is more important than timetable”, Mr Nath added, stressing “the historical opportunity to rectify the failings of agricultural trade”.
For the developing world, the agricultural dossier is the key to the agreement, which the G20 did not fail to point out in its joint statement. Calling on the major developed trading powers to “show proof of flexibility and political determination”, the G20 demands a substantial reduction in internal subsidies and the elimination of all forms of export subsidies in rich countries by 2013. For the emerging countries, a low range of US support to agriculture close to $12 billion is the “only acceptable proposal”. The G20 also stresses the need for a balance to be struck between agriculture and the reductions in customs duties in the industrial field (NAMA). Developed countries hope to limit the maximum amount of customs duties on industrial products to 10% for themselves and to 15% for the developing countries, an effort that the developing countries consider disproportionate. Allied to about ten emerging countries including India and South Africa, Brazil made a counter-attack last week with its proposal to set at 35% the maximum customs duty authorised for the developing countries.
Speaking to the press, Kamal Nath of India welcomed the negotiation of indicators for special products (sensitive products for developing countries) and expressed the hope that negotiations would gather pace on this sensitive matter. His South-African counterpart, Mandisi Mpahlwa, placed emphasis on special safeguard mechanisms. The developing countries, and in particular the large Asian countries with a large rural population dependent upon a handful of subsistence products such as India and Indonesia, and who head the G-33, hope to be able to select special products that they may partially or totally exempt from market opening. They also hope to benefit from special safeguard mechanisms allowing them to increase their customs duties to protect sudden inflows of farm produce imports. “Flexibility is the key”, stressed Mari Pengestu of Indonesia. (eh)