Asia, a case for global economy in WTO talks

By Martin Abbugao

MANILA (AFP): Asian countries will make a case for a global economy with a human face at the World Trade Organization (WTO) talks in Seattle at the end of November, insisting that the concerns of small and vulnerable nations be taken into account.

The continent, home to more than half of the world's six billion people, has complained that previous negotiations on opening markets worldwide were skewed heavily in favor of wealthy industrialized nations able to call the shots by virtue of sheer economic power.

Officials, businessmen, economists and farmers from the region say they hope the new round of global trade talks due to be launched by the WTO ministerial meeting which opens in Seattle, Washington on Nov. 30, will correct these "imbalances" and allow developing countries to be heard.

"The next round of trade negotiations must be more balanced -- that is, more reflective of the interests and concerns of the developing world -- than has been the case in earlier rounds," said World Bank chief economist Joseph Stiglitz.

"Unless we achieve greater balance, we will place at peril the success of future negotiations," he said at a recent conference here.

At the heart of the debate is a demand by developing countries for the abolition of subsidies given by the governments of the European Union and the United States to their farmers.

Tariffs on farm products remain high and non-tariff measures such as quotas have hampered exports, Asian officials complained.

While developing countries moved to remove support to the farm sector as agreed during the last round of global trade talks, or the Uruguay Round, industrialized nations have maintained subsidies.

"There are serious imbalances in the WTO system against farmers in the developing countries," said Leonardo Montemayor, vice president of the International Federation of Agricultural Producers (IFAP), representing 500 million farmers worldwide.

He said 61 out of 71 developing countries have virtually scrapped support to their farm sectors, but developed nations managed to retain support mechanisms under the WTO Agreement on Agriculture.

"Fair trade competition does not exist at the moment" in agriculture, he said in a statement.

"The result of not having a level playing field is continuing poverty in the rural areas, rural exodus and increased dependence of developing countries on imports from the industrialized countries," said Montemayor, also a Philippine congressman representing farmers.

The United States at the Asia Pacific Economic Cooperation forum in Auckland, New Zealand, in September backed calls for the abolition of farm subsidies, throwing down the gauntlet to the EU.

Global subsidies totaled US$6.4 billion in 1998, of which $2.2 billion went to dairy products.

Aside from subsidies, Asia would push for the fulfillment of commitments made during the previous WTO round, notably greater access for textile products in industrial markets.

The region wants stronger anti-dumping measures, greater market access for their exports to deepen integration into the global trading system, and technical assistance to bring laws and policies in line with their WTO commitments, officials said.

It would also ask rich nations to honor a commitment to provide "special" treatment for products from developing countries, as hopes are fading that the industrial world will go ahead with an offer of zero tariffs for all goods from the world's poorest and least developed countries.

Thai Commerce Minister Supachai Panitchpakdi, who is to take over as head of the WTO in three years, has urged Washington to "take the leading role in offering benefits to developing countries, especially in negotiations on farm and textile trade and also special treatment to the lesser developed countries."

Window: Aside from subsidies, Asia would push for the fulfillment of commitments made during the previous WTO round, notably greater access for textile products in industrial markets.