NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Calls grow to smash WTO deal into digestible pieces

Published 12/03/2009, 05:32 AM
Updated 12/03/2009, 05:36 AM

* All-or-nothing Doha round spans 20 negotiating areas

* Needs consensus among 153 govts with differing priorities

* Calls to spin out early agreements in cotton, clean energy

By Laura MacInnis

GENEVA, Dec 3 (Reuters) - Impatience with the glacial pace of global free trade negotiations prompted calls this week for the Doha round to be smashed into smaller and more digestible mini-deals that could be agreed quickly.

At a World Trade Organisation meeting in Geneva, ministers from both rich and poor countries expressed frustration at having to wait for an overall Doha deal to be wrapped up to benefit from some its least controversial elements.

British Trade Minister Gareth Thomas said punitive import tariffs on wind turbines, solar panels and other environmental goods should be cut immediately to give incentives to producers in the clean-energy sector.

"Why hold back now, just because we are waiting for the Doha round to be done?" he said.

The WTO's 153 member governments need to reach consensus in all areas of the global accord -- which aims to make it easier to export everything from cars to computers to clothes -- in order for the Doha round to be signed.

But many countries have hesitated to cut the payments and subsidies they give to politically influential farmers, and also face pressure from manufacturers aggrieved at being exposed to more outside competition under the deal.

That has caused big delays and blockages in the negotiations, now in their ninth year.

With doubts already hanging over a pledge from WTO members to edge the deal to conclusion in 2010, countries with something to gain from certain corners of the Doha agenda are looking for ways to secure an "early harvest" ahead of the full agreement.

South African Trade Minister Rob Davies said that subsidies to U.S. cotton growers, which have suppressed global prices and hurt African producers, should be cut before the eventual Doha deal. "That would be fair and just," he said.

And Burkina Faso and other West African cotton producers threatened in Geneva to launch WTO litigation against Washington over the U.S. subsidies, saying "We cannot wait for ever because our entire cotton industry will disappear."

FISHING, BANANA DEALS

Sustainable farming activists said this week a breakaway agreement on cutting subsidies to deep-sea fishing vessels should also precede a full Doha accord, and the European Union said it was on the verge of agreeing a resolution to the long-standing "banana wars" with Latin America as a side deal to Doha, instead of making producers wait.

At the end of the Geneva ministerial, where officials said they would take the pulse of the round again in early 2010, WTO Director-General Pascal Lamy said that Doha would remain an all-or-nothing "single undertaking" unless all members agreed to break it apart.

Negotiating all 20 pieces of the Doha agenda at once helps balance trade-offs and gains "between topics which some of our members like and topics which some of our members like less," the Frenchman told a news conference.

"For the moment, we remain with the single undertaking," he said. "Some of these suggestions have been floated but as long as there is no consensus to break the single undertaking, all of these topics remain bundled in the negotiating bag and the negotiation will finish when members have agreed on each and every one of these 20 topics."

Demands to settle issues like cotton or duty-free access for goods from the poorest countries early are aimed particularly at the United States. But U.S. Trade Representative Ron Kirk said that he would wait to see what the whole package offered.

"We want you to go ahead and do duty-free, quota-free, we want you to go ahead and do cotton, but you'll kind of figure out what the U.S. will get down the line, and I felt: What about nothing's decided until everything's decided?" Kirk said. (Editing by Tim Pearce) ((laura.macinnis@reuters.com; +41 22 733 3831; Reuters Messaging: laura.macinnis.reuters.com@reuters.net ))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.