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.