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."