SWITZERLAND: Global free trade talks collapse after nearly five years of on-off haggling

Record ID: 805356

  • Title: SWITZERLAND: Global free trade talks collapse after nearly five years of on-off haggling
  • Date: 24th July 2006
  • Summary: (W3) GENEVA, SWITZERLAND (JULY 24, 2006) (REUTERS) EXTERIOR OF THE WORLD TRADE ORGANISATION (WTO) HEADQUARTERS IN GENEVA JAPANESE TRADE MINISTER TOSHIRO NIKAI ARRIVING AT THE WTO DELEGATIONS ARRIVING AT THE WTO (SOUNDBITE) (English) INDIAN COMMERCE AND INDUSTRY MINISTER KAMAL NATH ARRIVING AT THE WTO AND SAYING: "Yes, well I am disappointed, because the developing direction of this round was being trampled upon. The completion of the round is important, the content of the round is even more important, and I look forward that with some reflection, developed countries will move towards correcting the structural flaws in global trade, especially in agriculture. We cannot be perpetuating these structural flaws" (SOUNDBITE) (English) BRAZILIAN FOREIGN MINISTER CELSO AMORIN SAYING: "Of course I am disappointed and I am concerned for Brazil has put a lot of effort in this round. I'm not despaired because I think it will resume but there is always the risk of some unravelling. On the other hand the silver lining is that all of those who have spoken continue to be committed" EUROPEAN UNION TRADE COMMISSIONER PETER MANDELSON ARRIVING AT THE WTO UNITED STATES TRADE REPRESENTATIVE SUSAN SCHWAB ARRIVING AT THE CONFERENCE CONFERENCE ROOM (SOUNDBITE) (English) UNITED STATES TRADE REPRESENTATIVE SUSAN SCHWAB SAYING: "We're obviously very disappointed that the G6 ministers were not able to reach an agreement last night. The U.S. came to Geneva with the flexibility to offer more on domestic support and market access. We took seriously the admonition of the leaders of the G8 summit in St Petersburg, but unfortunately the promises of flexibility on market access coming from St Petersburg did not materialise in Geneva" JOURNALISTS AT THE CONFERENCE SUSAN SCHWAB LEAVING THE CONFERENCE ROOM EUROPEAN UNION TRADE COMMISSIONER PETER MANDELSON ARRIVING AT THE CONFERENCE CONFERENCE ROOM (SOUNDBITE) (English) E.U. TRADE CHIEF PETER MANDELSON SAYING: "I want to express the profound disappointment and sadness of the member states of the EU, and of Mariann (EU Agriculture Commission Mariann Fischer Boel) and myself for the World Trade talks are having to be suspended today. This is neither desirable nor inevitable, it could so easily have been avoided. What stands between us and the modalities of an agreement are not vast numbers or enormous sums" (SOUNDBITE) (English) E.U. TRADE CHIEF PETER MANDELSON SAYING: "In deciding to withhold any indication of their own future flexibility, the United States has judged that it would be better for the process of negotiations to be discontinued at this stage" JOURNALISTS PETER MANDELSON FINISHING THE CONFERENCE PETER MANDELSON STANDING WITH KAMAL NATH ON THE PHONE
  • Embargoed: 8th August 2006 13:00
  • Keywords:
  • Location: Switzerland
  • Country: Switzerland
  • Topics: Economic News
  • Reuters ID: LVA6ONH2MOFOXI1OSUGP8OWJEBQZ
  • Story Text: Global free trade talks collapsed on Monday (July 24) after nearly five years of on-off haggling and resuming them could take years, officials and diplomats said.
    The suspension of the World Trade Organisation's (WTO) Doha round, which was expected to be announced formally by WTO chief Pascal Lamy later on Monday, came after major trading powers failed in a last ditch bid to overcome differences on reforming world farm trade, which lies at the heart of the round.
    "Yes, well I am disappointed, because the developing direction of this round was being trampled upon. The completion of the round is important, the content of the round is even more important, and I look forward that with some reflection, developed countries will move towards correcting the structural flaws in global trade, especially in agriculture. We cannot be perpetuating these structural flaws," Indian Commerce and Industry Minister Kamal Nath told journalists. When asked how long the suspension could last, he replied anywhere from months to years.
    Lamy had warned members of the so-called G6 late on Sunday (July 23) that he would halt the Doha Development Agenda -- launched in 2001 to ease poverty and boost the global economy -- without a quick end to the deadlock, diplomats said earlier.
    But 14 hours of talks between the six -- the United States the European Union, Brazil, Australia, Japan and India -- yielded no breakthrough in slashing farm subsidies and lowering agricultural tariffs.
    The United States said the EU and other WTO members that it calls "protectionist" had not done enough to lower farm tariff barriers to allow it to move further on subsidies.
    "We're obviously very disappointed that the G6 ministers were not able to reach an agreement last night. The U.S. came to Geneva with the flexibility to offer more on domestic support and market access. We took seriously the admonition of the leaders of the G8 summit in St Petersburg, but unfortunately the promises of flexibility on market access coming from St Petersburg did not materialize in Geneva," said U.S. Trade Representative Susan Schwab.
    But EU Trade Commission Peter Mandelson pointed a finger at the United States, telling journalists Washington "was unwilling to accept or indeed to acknowledge the flexibility shown by others".
    "I want to express the profound disappointment and sadness of the member states of the EU, and of Mariann (EU Agriculture Commission Mariann Fischer Boel) and myself for the World Trade talks are having to be suspended today. This is neither desirable nor inevitable, it could so easily have been avoided. What stands between us and the modalities of an agreement are not vast numbers or enormous sums," said Mandelson.
    Despite the debacle, all members of the G6 said that they remained committed to the multilateral trading system and to completing the Doha round, even if they could not say how or when the negotiations could be revived.
    The crisis recalled a similar breakdown in 1990 during the previous round of free trade negotiations -- the Uruguay Round. That round, launched in 1986, was only finished in 1993.
    Brazilian Foreign Minister Celso Amorim noted "there is always a risk of some unravelling" of progress to date in the negotiations.
    "The silver lining is that all those who spoke continue to be committed," he said.
    The round has been billed as a once-in-a-generation chance to boost global growth and lift millions out of poverty.
    The G6 countries account for some three quarters of world trade and represent a wide range of commercial interests.
    Washington says its offer to reduce subsidy limits by 60 percent is significant but trade rivals argue the cuts leave real spending unaffected.
    Diplomats said Mandelson had spelt out how close Brussels could get to the level of tariff and subsidy cuts demanded by developing countries, but that was not enough for the United States.
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