New tensions spoil struggling WTO talks

New tensions spoil struggling WTO talks

GENEVA

Friday, July 25, 2008

STRAINS between big and small countries worsened tension between rich and poor at WTO trade talks here yesterday as countries struggled to thresh out a new global free-trade pact.

Negotiators continued meetings after a gruelling session overnight, but despite efforts by some to stress progress was being made, it was clear stark differences remained over critical sticking-points.

"On some of the key issues, positions still remain too far apart," WTO director-general Pascal Lamy conceded at a meeting of the organisation's 153 members yesterday, his spokesman told reporters.

The World Trade Organisation has convened a meeting here of 35 leading trade negotiators with the aim of mapping out a deal to conclude the long-delayed Doha round of global trade talks.

The Doha round began seven years ago with the aim of helping poor countries, but it has been delayed by disputes between the rich developed world and poorer developing nations over cutting subsidies and tariffs.

After talks between all 35 invited delegations failed to deliver progress, Lamy has concentrated his efforts on trying to get a group of seven leading trade powers to find common ground.

Only the United States, the European Union, Japan, India, Brazil, Australia and China were involved in talks until the early hours yesterday morning, which drew complaints from smaller nations.

Eight delegations complained about the approach at a morning meeting, Rockwell said, with host nation Switzerland leading the criticism.

The European Trade Commissioner Mandelson admitted that the overnight trade talks had been counted among the "most difficult and confrontational negotiation" of his term.

In a blog, Mandelson, commissioner for the last four years, described the 12 hours of negotiation between the EU, United States, Australia, China, India, Brazil and Japan as "tense".

Leaving the meeting yesterday morning, India's Trade Minister Kamal Nath said there had been progress "but there is still some heavy lifting to be done".

The negotiations were meant to be finished today, but Rockwell said yesterday that they were likely to continue past this day.

"Clearly the timetable has slipped. Given our track record in this respect one should not be terribly surprised," he told reporters.Both the US and EU have made opening gambits by offering to reduce trade-distorting assistance to their farmers and they are now waiting for steps by developing nations to open their markets for industrial goods. On Tuesday, Washington offered to cut its official aid ceiling for its farmers.AFP