APEC trade ministers agree on WTO talks

APEC trade ministers agree on WTO talks

Kelly Olsen, Associated Press/Busan, South Korea

Pacific Rim trade ministers agreed on Tuesday on a joint
statement aimed at reviving stalled global trade talks, stopping
short of naming the European Union as the main stumbling block as
some began to see signs of compromise in the words of British
Prime Minister Tony Blair.

Breaking a deadlock in the World Trade Organization over
subsidies in the heavily-protected farming sectors of Europe and
some other developed countries has become a key focus of the Asia
Pacific Economic Cooperation forum meeting in Busan, South Korea.

Trade ministers from APEC's 21 member economies held a special
meeting on Tuesday with WTO chief Pascal Lamy, and later agreed
on the wording of a special statement on the issue they will hand
to APEC leaders for their annual summit on Friday and Saturday.

Officials here hope a strong statement by APEC's leaders,
including U.S. President George W. Bush, Japan's Junichiro
Koizumi and China's Hu Jintao, will have enough political clout
to revive hopes for a WTO meeting in Hong Kong next month.

"If we can, as countries that make up 50 percent of world
trade, come up with a strong commitment then we can make the
progress happen on our side," said Indonesian Trade Minister Mari
Pangestu.

Australian Foreign Minister Alexander Downer and Chilean
Foreign Minister Ignacio Walker took heart from a speech by Blair
on Monday that challenged the United States and the EU to take
the steps needed to make the Hong Kong talks a success.

"We need a comprehensive, ambitious agreement to cut barriers
to trade in the three key areas: agriculture, nonagricultural
market access, and services," Blair said in London.

Blair "has the presidency of the European Union at the moment
and if his speech does reflect the views of the European Union
it's an important step forward," Downer said.

Many of APEC's members are exporting economies that stand to
make big gains from greater access to highly protected markets in
Europe, the United States and elsewhere.

Europe's trade chief Peter Mandelson said last week the EU
would make no new offer on agriculture ahead of the Hong Kong
meeting.

Singapore's Foreign Minister George Yeo acknowledged that APEC
has little firepower to push through a conclusion.

"We can only express our political will to have a successful
ministerial meeting in Hong Kong," Yeo said. "But in the end the
negotiations would be tough, we must expect that because the
stakes are very high."

APEC officials are worried the so-called Doha round of
negotiations could collapse if progress is not made at the Dec.
13 to Dec. 18 Hong Kong meeting and have said leaders will issue
a "powerful statement" to help achieve a breakthrough.

Some analysts are doubtful that APEC leaders can influence the
WTO talks.

"I think at best they can offer a strongly worded statement of
intent," said Mike Moran, regional economist at Standard
Chartered Bank in Hong Kong. "I wouldn't be surprised if come the
end of the WTO meeting in Hong Kong that we're exactly where we
are right now."