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Europe Daily Bulletin No. 9517
Contents Publication in full By article 10 / 34
GENERAL NEWS / (eu) eu/wto/doha

US Trade Representative Susan Schwab urges G10 and G20 leaders to be flexible

Brussels, 05/10/2007 (Agence Europe) - The United States' recent pledge to negotiate within the range of subsidy reductions set out in the Falconer-Stephenson compromise deal published in July 2007 has inspired the US Administration, which now sees itself in a strong position in the Doha trade talks. Writing in the Financial Times on 4 October, US Trade Representative Susan Schwab raised the pressure on the chief negotiators for two groups of countries at the WTO talks, the G10 (net agricultural importers) and the G20 (emerging economies), urging the G10 to make concessions on access to farm markets and the G20 on access to industrial markets. 'A successful agreement in the Doha round is within reach, but it could slip through our fingers unless a handful of major developed and developing countries demonstrate their willingness to confront difficult choices,' wrote Schwab, explaining that 'the US has already taken a step' by agreeing to negotiate within the range of reductions put forward by WTO farm mediator Crawford Falconer. In his compromise document, Falconer calls on the United States to reduce its domestic farm subsidies to between $12.8 bn and $16.2 bn, a range which Washington had refused to consider in the past. Welcoming moves by the EU on farm issues, and by Chile, Mexico and Singapore on market access for industrial goods, Schwab wrote: 'Lamentably, most of the other leading members have yet to state their intentions. Even worse, some have signalled an unwillingness to negotiate within the texts' ranges or a desire to nullify market-opening commitments through loopholes.' She accused Japan, Switzerland and other rich nations (Ed: South Korea and Norway) of protecting their agriculture and accused South Africa, Argentina, Brazil, China and India of refusing to make further reductions in their industrial tariffs. 'We are at a critical point in the negotiations. To move forward, it is critical that all WTO members signal that they will join the US in negotiations within the ranges and flexibilities in both texts,' explained Schwab: 'This is a binary choice - yes or no. 'Yes, but' or 'we will be flexible' or 'you go first' are no longer answers that will drive the Doha round to a timely conclusion.' (eh)

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