Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-INTERVIEW-Canada urges action on big Doha issues

Published 07/16/2010, 12:06 PM
Updated 07/16/2010, 12:08 PM

* Bilateral answers needed before fresh high level meeting

* Warns politics could slow progress on Doha talks

* Sees Canada-EU deal before Doha Round concludes (Adds comments on Canada-EU talks)

By Sam Cage

BUCHAREST, July 16 (Reuters) - WTO member states must find answers to bilateral squabbles if they want to achieve any global breakthrough in free trade talks, Canada's trade minister said on Friday.

In an interview with Reuters, Peter Van Loan said he would not point fingers at which World Trade Organisation members were holding up the Doha round but warned that political populism could slow progress towards any kind of free trade deal.

"I think the key issue is that some of those countries that are seen as impediments show some movement," said Van Loan, who was visiting Romania as part of a wider European tour.

"I really think the focus of those at the WTO has to be to find a way to get critical movement on the key issues," he said.

"You need to have a sustained effort in the places where rocks need to be moved."

The Doha talks, launched in 2001, aim to break down barriers to global trade but remain deadlocked over differences between the United States and emerging economies. [ID:nLDE66F08N]

Washington wants China, India and Brazil to make a bigger contribution to a deal and says talks so far have concentrated on agriculture and manufactured goods, with little progress in services such as insurance and express delivery.

China, India and Brazil retort that with hundreds of millions of their citizens still living in poverty, they cannot give all that it will take to clinch a deal in the Doha round.

The United States and China have accused each other of stalling progress. [ID:nLDE65P0GH]

"I know that there have been many who have said the answer is another ministerial meeting or ministerial meetings, or making it the major topic of discussion at the G20 conference," Van Loan said.

"I think that, quite frankly, puts at risk the credibility of the Doha round ... I think those trying to advance the agenda would be well advised to be focused in their efforts."

Canada is negotiating a trade deal with the European Union, which Van Loan said would likely be completed by the end of 2011, boosting trade and investment flows.

Speaking to reporters later on Friday via teleconference, Van Loan shrugged off critics who say Ottawa picked a bad time to negotiate with the EU as the global crisis has led to more protectionism and has weakened the euro.

He said a 2008 study that estimated the deal would boost Canadian gross domestic product by 8.2 billion euros (C$11 billion) by 2014 was likely overly conservative.

"There are a number of factors that don't take full account of the potential of the agreement," he said.

"One of the significant assumptions of that study was that the Doha round would have been completed and all of its benefits would already have been accrued. Right now it looks far more likely that this agreement would come into place before the Doha round would reach a satisfactory conclusion."

Van Loan said there was a tendency among some politicians to use trade disputes to aid their popularity.

"In some ways disputes can serve as an incentive to work towards a resolution, in others they may just politicize and poison the environment and fuel some populist tendencies," he said.

"I think the current political environment in the United States may be a bit more of the latter." (Additional reporting by Louise Egan in Ottawa; Editing by Maria Golovnina and Peter Galloway)

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.