EU, Asia look to settle trade issues
EU, Asia look to settle trade issues
HANOI (Reuters): Economic ministers and officials from Asia
and Europe get together in Hanoi this week to try to iron out
differences in the way of a new trade liberalization round and
revive economic ties between their regions.
The European Union (EU) and the United States want to launch a
new round of world trade liberalization talks at a Nov. 9-13
meeting of the World Trade Organization (WTO) in Doha, Qatar, a
move they hope will help boost a flagging world economy.
But to do this they need to convince developing countries,
some of whom fear a new round of liberalization will only create
bigger profits for rich countries at their expense.
"The active support of the Asian countries will be essential
if we are to launch a new round at WTO negotiations in Qatar,"
said EU Trade Commissioner Pasal Lamy ahead of his Hanoi trip.
The last attempt to launch a new trade round failed in Seattle
in December 1999 when Europe and the United States, the world's
two biggest trading blocs, fell out over the agenda.
A week of meetings in Hanoi will involve the 15 EU countries,
the 10-member Association of South East Asian Nations, China,
Japan, South Korea, Australia, New Zealand and the United States.
While Southeast Asian countries generally back the launching
of a new round they see some major hurdles that have to be
overcome if that is to happen in Qatar in November.
Some Asian officials in Hanoi for the talks have warned there
was little time left to settle their concerns before Qatar.
Philippines Assistant Secretary for Trade Jose Antonio
Buencamino said on Friday two changes to WTO rules proposed by
developed countries covering investment and the environment were
"non-starters". He said Manila also had serious concerns about an
EU proposal on food safety.
The director general of the Thai Commerce Ministry's
Department of Business Economic, Boontipa Simaskul, said
positions were still far apart on five core issues --
environment, investment, competition policy, implementation and
agriculture.
Last week, even France suggested efforts to launch a new round
in Qatar might fail.
A European official said the EU was prepared to be flexible in
order to reach compromises with Asian countries.
"There is put in place an overall EU strategy and proposal for
all these things," said the official, who did want to be
identified.
Another European official said Europe was opening up to Asian
goods and in return was looking for greater access to Asian
markets, in particular for its services.
"We believe we are a fairly open market...We are opening the
market to allow them to export their products and we would just
expect something in return," the second European official said.
An Asian official said he expected the Asian ministers to show
guarded support for a new round of liberalization talks at the
Hanoi meeting, but there would be a lot more hard bargaining
between now and the Qatar meeting.
Another issue of concern to both Europeans and Asians is
emerging powerhouse China's admission to the WTO, which is
expected later this year.
Both the Asians and the Europeans say they want to strengthen
economic ties between their regions.
The Asians, in particular the Southeast Asians, realize they
have to overcome dimmed European perceptions of their region as
an investment destination in the wake of the 1997 financial
crisis and subsequent sluggish growth.
Some EU leaders see EU-Asia as the weak link in a global
triangle binding the United States, EU and Asia and want to
strengthen engagement with Asia in the political and security
fields, and to boost business ties.