Global Insight: WTO meeting in Geneva without any breakthrough – DNC Air Cylinde
September 2003 WTO ministerial summit in Cancun, Mexico after the collapse of everyone doing? By the end of July part of the answer given in the Geneva Conference. It's slow, very reluctant, but it is also worried about the changing their behavior because they fear the collapse of this meeting again.
Traditionally, the long-unresolved issues will be submitted to Geneva, Switzerland, by the end of July when the WTO's 147 members of the party in trouble WTO headquarters, their goal is to restart the Doha Round negotiations. The failure led to the WTO Cancun meeting the overall work was questioned. The greatest pressure from the European Union Trade Commissioner Pascal Lamy and U.S. Trade Representative Robert Zoellick.
Therefore, the WTO headquarters in Geneva, must strive to began in 2001 round of trade negotiations back on track, the round was a "development round", the main advocate of state European Union and the United States, aimed at elimination of subsidies and trade barriers by opening up agricultural trade, this round of talks originally scheduled end of 2004.
In order to act in Geneva, while helping to continue the development of the Doha round of trade talks, the United States and the European Union proposed a radical change in their own cause failure of the Cancun meeting of trade protectionism. Months before the meeting in Geneva, the United States and the European Union has insisted that their meeting in Cancun, and many other meetings on the stand. They once again forced to members agreed not to make concessions of their own, while Europe and the United States are more likely to promote members of the concessions agreed. The edge of Europe and the United States policy and practice is leading to stress the reasons for the collapse of the Cancun meeting.
WTO Director-General Supachai's statement is entirely different. He said the Geneva agreement is "truly historic significance." "Member governments for the first time agreed to abolish all the situation in a day of agricultural export subsidies. They have agreed to substantially reduce trade-distorting domestic agricultural subsidies."
But Mr. Supachai's "one day" is unknown. U.S. and EU have agreed to eliminate export subsidies and reduction of production subsidies, but they do not determine the time. Developed countries to give up the four so-called "Singapore issues" in three of the Cancun meeting, the EU strongly urged developing countries to improve market access. Singapore issues of investment policy, competition and increased transparency in government acquisition of three issues have been abandoned, so far, only trade facilitation.
Reduction of subsidies in progress on the issue would definitely be welcome. But still a hypothesis. Because only a framework agreement in Geneva. Agreement "feature" is a protracted negotiations (the specific details, the bottom line and the firm commitment).
Geneva Conference has ended, WTO declared the meeting a success. Otherwise, the U.S. presidential election approaches may let the trade talks, especially the stalled trade concessions. Meanwhile, in Europe, Lamy end of his tenure. The new Trade Commissioner, Policy Commitments more complex, need to please the new accession countries of Central and Eastern European members.
Beginning to realize that the Doha Round in Geneva is a very long road. Now, WTO trade negotiations is no longer determined the official end of the deadline. December 2005 will be held at the next ministerial meeting in Hong Kong.
Geneva has a "historic" framework agreement is how to achieve it? Neither the historical significance of this agreement and no breakthrough because the United States and the European Union in the Doha talks as early as from the text agreed to make concessions on agriculture. It is important because the U.S. and EU come to realize that only the actual reduction in their annual 300,000,000,000 U.S. dollars of agricultural subsidies in exchange for developing countries in particular, they want to see a very high tariff reduction.
For developing countries, the other encouraging signs, WTO on Australia, Brazil and Thailand accused the EU sugar farmers and made a provisional ruling. U.S. and EU meeting in Cancun itself become very embarrassed, and now extremely reluctant to promote in developing countries under the trade reform.
But the unpleasant fact remains. That is unless the United States and the European Union is willing to correct his mistake, against their own powerful agricultural lobby, removal of subsidies, to abandon the hypocritical and do reform, otherwise, WTO struggle of the road will be very long.
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