Rich countries may split powerful G-22 bloc: RP

Rich countries may split powerful G-22 bloc: RP

Mynardo Macaraig, Agence France-Presse, Manila

Rich nations may try to split the group of 22 developing nations, whose firm stand on agriculture issues led to the failure of the WTO talks in Cancun, the Philippines warned on Thursday.

The first priority of the new bloc, known popularly as the "G- 22" and of which the Philippines is a key member, would be to keep intact, Philippine Agriculture Secretary Lito Lorenzo said.

"Of course, there will be tremendous pressure to begin to attract members of the G-22 to pull out of the grouping as they settle their concerns with the developed nations" individually, Lorenzo told a media forum.

The WTO conference in Cancun, Mexico this month foundered amid disputes between developed and developing countries over reductions in farm subsidies and on proposals for a series of trade and investment issues.

"I think the developed nations will be more understanding the next time around ... they are under pressure to arrive at some improvements so they will probably work on a parallel tack of bilateral discussions," Lorenzo said.

He said that the problem with such bilateral negotiations, however, was that "the one coming from a stronger position will be able to dictate more favorable terms for themselves.

"The weaker one in the bilateral meeting, if not prepared, is better off working within a grouping to push forward his or her concerns," Lorenzo said

He said that for rich countries, "WTO Cancun was a failure but it was a resounding success for developing countries, especially the Philippine delegates," because of the united stand of the G- 22.

The G-22, led by China, India and Brazil, opposed agricultural subsidies of wealthy nations while pushing for greater market access for their own agricultural products.

This new bloc has shown the WTO that "before any issue is taken up, the matter of agricultural reform must be resolved," Lorenzo said.

He conceded that the bloc had overtaken the 17-nation Cairns group of agriculture-exporting countries, led by Australia, Canada and New Zealand, which he said had become a "microcosm of the rich and poor WTO membership."

The Philippines would remain a member of Cairns but "the dilemma here is that the common (focus) of Cairns is the trade relationship with the United States."

He said the stand at Cancun was "the first time (developing countries) did not break ranks."

In the past, such countries had been willing to "bend over backwards" to open their markets only to find they did receive the full benefits promised them under liberalized trade, he said.

Lorenzo said that many ministers at Cancun had "their backs to the wall" as there was growing political pressure on their governments from their electorates who feel that their lives are not getting better despite trade liberalization.

Lorenzo said the Philippines had been "too gung-ho" in opening its market in the past in expectation of reciprocal treatment from other countries that did not materialize.