Brussels, 23/07/2009 (Agence Europe) - In an interview to Reuters on Wednesday 22 July, Commissioner for Trade Catherine Ashton provided assurances that the US and India (whose bilateral dispute on the special safeguard mechanism for agriculture in developing countries has been blocking the Doha Round since the July 2008 ministerial: EUROPE 9714) are prepared to make a further effort to reach a multilateral agreement on the liberalisation of world trade. In a reference to the ideas expressed by Pascal Lamy, Director General of the WTO, who had said that 80% of the questions negotiated in the Doha Round had already been resolved, Ashton stated: “I have no doubt that President Obama is committed to finding a way forward”. Ms Ashton also affirmed that India is prepared to kick-start the talks that had been at an impasse for the past year on both a technical and political level, despite the commitment made at the beginning of July by G8+5 leaders (Germany, Canada, US, France, Italy, Japan, United Kingdom, Russia and Brazil, China, India, Mexico, South Africa) in addition to Australia, South Korea and Indonesia, to conclude the talks in 2010, based on the progress made in modalities in trade in agriculture and non agricultural market access (NAMA). Before the next G20 summit at the end of September in Pittsburgh, India will host a meeting on 3-4 September on relaunching the round. Ms Ashton has been invited, as well as trade ministers from the emerging G20 countries (Brazil, China, India etc) and Canada, US, Japan, Switzerland, Norway, South Korea, Trinidad and Tobago, Burkina Faso and Mauritius.
According to the US weekly, Inside US Trade, on 17 July, only the participation of US Representative Ron Kirk at the New Delhi meeting remains uncertain. US negotiators do not appear to be in a hurry either and privately consider that modalities can wait until 2010. This deadline is sought by the US and confirmed at the WTO by diplomats who, despite efforts by Mr Lamy to obtain an agreement in the autumn, claim that such an outcome is unlikely. According to these sources, the US is seen as the main obstacle to further progress and is accused of demanding improvements to the text on modalities but without explaining whether they can be achieved or specifying what additional concessions they expect on market access, while insisting on the need to define a new approach to the negotiations. The US would like to extend their bilateral consultation until the autumn with developing countries in an effort to ascertain what can be accomplished on market access and the current modalities project.
Some observers say that progress in the short term in Geneva will depend on the results of these bilateral consultations, particularly those with China. Other commentators deplore the sluggishness with which technical discussions at the WTO HQ are being pursued, despite recent appeals for the relaunch made at the highest political levels. Mr Lamy told the presidents of the different negotiating committees (agriculture, NAMA, services etc) that he wanted to have new compromise texts on modalities before October, but mediators have said that this is impossible in the absence of tangible progress at a technical level. The mediator on the agricultural chapter, the New Zealand ambassador, David Walker, indicated that he would be unable to resubmit a revised draft compromise before December at the earliest.
Appeal from US and European importers, distributors and wholesalers for agreement
In a joint declaration published on Tuesday 21 July, the National Retail Federation and Euro-commerce (the respective US and European federations of importers, distributors and wholesalers) urged the EU and US to “facilitate the breakthrough needed to enable companies to enjoy the benefits of a commercially-sound deal”: - a reinforced multilateral trading system to shield against emerging protectionist pressures; - a focus on consumers, lower prices and greater choice in goods and services; - enhanced legal protection (legal certainty, predictability and non-discrimination) thanks to a strong WTO as guarantor of critical legal rights for companies engaged in international trade and investment; - improved access for importers and exporters to fast-growing markets such as China, India, South-East Asia and Latin America. The two associations conclude that “dismantling customs and border procedures is particularly important for business. We are convinced that tabling a Draft Agreement on Trade Facilitation will inject additional momentum into the negotiations as a whole. Economic gains from Trade Facilitation may exceed benefits realised from other WTO negotiations”. (E.H./trans/rh)