World trade talks hinge on India, China, Brazil: US
WASHINGTON: The fate of long-running world trade talks depend on whether China , India and Brazil are willing to make a deal that will open their markets to additional foreign goods and services, U.S. Trade Representative Ron Kirk said on Wednesday.
"If I can just be blunt, the question is whether they are willing to walk in the room, close the door and hammer out a deal," Kirk said in a speech at a trade symposium hosted by U.S. Customs and Border Protection.
The remark came one day after European Union Trade Commissioner Karel De Gucht warned that the nearly 10-year-old round of talks were at a difficult stage and there was "no reason to be optimistic" about the chances for success.
"We're still at the table," Kirk said. "There's an anxiety that we may not get there. But we think it would be a real shame if we weren't able to find a way to rationalize global trade and get a Doha deal that works for everyone."
Kirk said developing countries often complain that the United States and the European Union have long dominated the process of establishing the international rules for trade.
"We've gladly opened that door and shown them we have three more chairs: one for China, one for India and one for Brazil."
"No three economies have benefited more from trade liberalization over the last 10 years than China, India and Brazil. That's a good thing," Kirk said.
"But with that blessing comes a responsibility, and we believe China, India and Brazil have the opportunity to find out just how bloody awful it is to bring these things to a close," Kirk said.
Despite De Gucht's bleak assessment of the talks, Kirk said he thought substantial progress had been made over the past 18 months in persuading other WTO members that a draft July 2008 deal did not do enough to open markets around the world to more trade.
"If I can just be blunt, the question is whether they are willing to walk in the room, close the door and hammer out a deal," Kirk said in a speech at a trade symposium hosted by U.S. Customs and Border Protection.
The remark came one day after European Union Trade Commissioner Karel De Gucht warned that the nearly 10-year-old round of talks were at a difficult stage and there was "no reason to be optimistic" about the chances for success.
"We're still at the table," Kirk said. "There's an anxiety that we may not get there. But we think it would be a real shame if we weren't able to find a way to rationalize global trade and get a Doha deal that works for everyone."
Kirk said developing countries often complain that the United States and the European Union have long dominated the process of establishing the international rules for trade.
"We've gladly opened that door and shown them we have three more chairs: one for China, one for India and one for Brazil."
"No three economies have benefited more from trade liberalization over the last 10 years than China, India and Brazil. That's a good thing," Kirk said.
"But with that blessing comes a responsibility, and we believe China, India and Brazil have the opportunity to find out just how bloody awful it is to bring these things to a close," Kirk said.
Despite De Gucht's bleak assessment of the talks, Kirk said he thought substantial progress had been made over the past 18 months in persuading other WTO members that a draft July 2008 deal did not do enough to open markets around the world to more trade.
13 Apr, 2011, 06.50PM IST,PTI
Doha trade negotiations on the verge of collapse
GENEVA: The Doha trade negotiations are on the verge of collapse due to unrealistic demands by leading industrialised countries that want China , India , and Brazil to "harmonise" a large percentage of their industrial tariffs well below current applied rates, sources said.
World Trade Organisation director general Pascal Lamy today informed members of the G-90 coalition that there are "unbridgeable" differences over "sectorals" in Doha industrial goods, sources said.
The G-90 includes countries from Africa, Pacific and Caribbean as well as least-developed countries.
Lamy said his meetings with the US, China, India, and Brazil over the last fortnight revealed that the gaps in positions among members are too wide and not amenable for any closure at this juncture, an African trade envoy told PTI.
As part of the sectoral negotiations, the US wants China, India, and Brazil to reduce their tariffs on chemicals, industrial engineering goods, and electricals and electronics close to zero.
Washington justified its demand on the ground that the three "emerging" countries are the major beneficiaries in the global trading system.
Though the Doha mandate calls for "voluntary" participation in the sectoral negotiations, the US has turned the tables by saying that unless the three developing nations agree to its demand for reducing tariffs close to zero through a basket approach it would not move, sources said.
The three developing countries flatly rejected the US demand on sectorals saying they would only participate on a voluntary basis to conclude the Doha agreement, said trade officials from these three countries.
Consequently, Lamy has now given up his plan to issue the "draft final texts".
Instead, he would circulate "documents" from the chairs for the Doha negotiating bodies on April 21.
In a fax sent to members on Monday, he said, "These documents will be accompanied by an introductory report by the TNC chair in which I will, inter alia, report on the consultations I am conducting currently."
The sudden volte-face took place on Friday last following a meeting between the director general, who is also the chair for the Doha trade negotiations committee, and the respective negotiating chairs, sources said.
"The Doha Round is dead," a South American trade envoy told PTI, arguing that "it is time for members to acknowledge this and make appropriate corrections."
Given the differences in Doha industrial goods, particularly sectorals, it is clear from the day one that it would be difficult to prepare a text.
"We are somewhat surprised by Lamy's admission that gaps on sectorals are unbridgeable, as we had repeatedly told him several months ago," said another trade envoy. In the absence of a plan to issue texts before Easter, it is clear that members will now have to prepare for a "soft-landing," said one trade envoy here.
He implied that members will continue to work without any deadline until there is some convergence.
Another trade envoy said, "The window of opportunity to conclude the Doha trade negotiations in 2011 is now almost impossible. Since 2008, differences in the three Doha market access areas of agriculture, industrial goods and services have significantly widened."
World Trade Organisation director general Pascal Lamy today informed members of the G-90 coalition that there are "unbridgeable" differences over "sectorals" in Doha industrial goods, sources said.
The G-90 includes countries from Africa, Pacific and Caribbean as well as least-developed countries.
Lamy said his meetings with the US, China, India, and Brazil over the last fortnight revealed that the gaps in positions among members are too wide and not amenable for any closure at this juncture, an African trade envoy told PTI.
As part of the sectoral negotiations, the US wants China, India, and Brazil to reduce their tariffs on chemicals, industrial engineering goods, and electricals and electronics close to zero.
Washington justified its demand on the ground that the three "emerging" countries are the major beneficiaries in the global trading system.
Though the Doha mandate calls for "voluntary" participation in the sectoral negotiations, the US has turned the tables by saying that unless the three developing nations agree to its demand for reducing tariffs close to zero through a basket approach it would not move, sources said.
The three developing countries flatly rejected the US demand on sectorals saying they would only participate on a voluntary basis to conclude the Doha agreement, said trade officials from these three countries.
Consequently, Lamy has now given up his plan to issue the "draft final texts".
Instead, he would circulate "documents" from the chairs for the Doha negotiating bodies on April 21.
In a fax sent to members on Monday, he said, "These documents will be accompanied by an introductory report by the TNC chair in which I will, inter alia, report on the consultations I am conducting currently."
The sudden volte-face took place on Friday last following a meeting between the director general, who is also the chair for the Doha trade negotiations committee, and the respective negotiating chairs, sources said.
"The Doha Round is dead," a South American trade envoy told PTI, arguing that "it is time for members to acknowledge this and make appropriate corrections."
Given the differences in Doha industrial goods, particularly sectorals, it is clear from the day one that it would be difficult to prepare a text.
"We are somewhat surprised by Lamy's admission that gaps on sectorals are unbridgeable, as we had repeatedly told him several months ago," said another trade envoy. In the absence of a plan to issue texts before Easter, it is clear that members will now have to prepare for a "soft-landing," said one trade envoy here.
He implied that members will continue to work without any deadline until there is some convergence.
Another trade envoy said, "The window of opportunity to conclude the Doha trade negotiations in 2011 is now almost impossible. Since 2008, differences in the three Doha market access areas of agriculture, industrial goods and services have significantly widened."
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