Newly installed World Bank chief Robert Zoellick is expressing cautious optimism that the latest draft texts for negotiations regarding agricultural market access and non-agricultural market access (NAMA) show progress towards completing the long-delayed Doha Round (you can stream WTO audio commentary on agricultural and non-agricultural issues). These texts constitute a starting point for negotiations that will resume shortly in Geneva. Unlike Wolfowitz, his not-so distinguished predecessor, Zoellick is more reluctant in calling for more US farm subsidy cuts. As always, I am doubtful that a breakthrough will be arrived at when the WTO members convene again. From Reuters comes this article:A world trade deal that benefits all economies is within reach if countries are prepared to negotiate seriously on draft texts released this week, World Bank President Robert Zoellick said on Friday."A major final push will be needed to close the gaps, but with the right spirit, there is now a deal on the table to be seized," Zoellick, a former chief trade negotiator for the United States, said in a statement.
Although the Doha round talks have been "long and arduous," a pair of draft texts released this week by diplomats in charge of the agricultural and industrial goods negotiations provide hope of a deal, Zoellick said.
"The papers reveal just how much significant progress has already been achieved, and that the remaining gaps can be specified to achieve results, even though the topics are contentious," Zoellick said.
Zoellick, now in his first month as World Bank president, was U.S. President George W. Bush's chief trade negotiator in November 2001 when the world trade talks were launched in Qatar's capital.
He is credited with using the goodwill felt toward the United States after the September 11 attacks to persuade many reluctant countries to start negotiations.
He has a long relationship with WTO Director General Pascal Lamy, who was European Union Trade Commissioner for roughly the same period when Zoellick was U.S. Trade Representative...
"The global community should stay focused on the prize. If the draft texts eventually become the basis of an agreement, all economies should be able to benefit," Zoellick said.
A little more than a year ago, Zoellick's predecessor, Paul Wolfowitz, irked U.S. trade negotiators and farm state lawmakers by urging the United States to break a deadlock in the talks by offering deeper farm subsidy cuts.
Zoellick steered clear of offering that specific advice, but said: "It is particularly important for poor farmers and workers in the developing countries to have greater opportunities to sell their products in the global marketplace and benefit from lower prices."
The World Bank is working closely with the WTO and development partners to fund "aid for trade" projects to help poor countries take advantage of new business opportunities generated by trade reform, Zoellick said.
Brazil's negotiator Celso Amorim warns though that the G20 developing nations are united on demanding real concessions from the North on agricultural subsidies. He is less sanguine than Zoellick on the new texts, to put it mildly. What's more, China wants a longer period of protection from industrial goods imports:
Brazil's foreign minister said Thursday that major developing countries were unified in World Trade Organization efforts to liberalize agriculture markets, a day after he expressed disappointment with two new draft proposals for leaning too far in the direction of the world's richest nations.
Celso Amorim also dampened hopes of an imminent breakthrough in the WTO's long-struggling talks aimed at producing a new global trade pact. China, meanwhile, said it was determined to negotiate a longer grace period for implementing industrial tariff cuts as part of a deal.
"Certainly there is still some way to go, though others would say a long way to go," Amorim told The Associated Press after meeting with trade diplomats from the G-20 group of developing countries, which has pushed for the United States and the European Union to cut tariffs on agricultural produce and slash subsidies to their farmers.
The WTO draft agreements for opening up farm and industrial markets released Tuesday said Washington needs to reduce its trade-distorting agricultural subsidies to a level between US$13 billion and US$16.4 billion (€9.4 billion and €11.9 billion). Washington has offered to go as low as US$17 billion (€12.3 billion).
While the EU appeared to escape major new demands, the documents required market concessions from major developing countries such as Brazil and India for manufacturing imports. China, which had demanded a decade-long grace period for making industrial tariff cuts as a newly acceded member to the body, would only be granted two years.
"That's only the chair's paper. That's not the final paper," said Ambassador Sun Zhenyu of China.
China, he added, would seek a longer delay in the cuts when negotiations based on the two documents start next week at the 150-member body's Geneva headquarters. He conceded, however, that Beijing's proposal has opponents.
"We still have our basic request," Sun said. "The U.S. has expressed reservations..."
Amorim said late Wednesday that Brazil was still studying the draft proposals, but added that they appeared to demand greater tariff cuts in manufacturing than in agriculture. A balance would be preferable, he said.
"The papers have problems," Amorim said after meeting with EU Trade Commissioner Peter Mandelson in Brussels, Belgium...
Amorim, who met later with WTO chief Pascal Lamy, said solidarity among major developing countries on farm trade issues was essential if the trade round was to be completed.
"What I heard encourages me," he said of the G-20 meeting, adding that progress over the last years has largely been due to their unity.
