WTO negotiators facing troubles

WTO negotiators facing troubles

Robert Evans, Reuters, Geneva

Negotiators from members of the World Trade Organization will
hold talks in Geneva this week which could seal the fate of
troubled negotiations aimed at removing barriers to global
commerce.

Already there are signs that an end-2004 deadline for the
conclusion of negotiations launched in Doha, Qatar last year may
not be met because developing nations are dissatisfied with what
is on offer.

"Right now, prospects for this round are not looking good,"
said one ambassador from a smaller country with strong interests
in several areas of the negotiations which range from slashing
goods tariffs to opening up service markets to reducing farm
subsidies.

"There is not a hope that we will wrap this up on schedule,
and keep everyone happy," said another deeply skeptical envoy,
referring to the deadline of Jan. 1, 2005 set at last November's
trade ministers conference.

The next few days will also see the start of a transfer of
leadership at the WTO. For the first time, a figure from the
developing world is to lead the 144-member organization seen by
the anti-globalization lobby as an evil force promoting
capitalist domination of the international economy.

The round of talks formally called the Doha Development Agenda
focuses on helping poorer countries -- which needed a great deal
of convincing that their problems would form the backbone of the
negotiations.

But developing countries complain that promises from the big
powers including the European Union and the United States do not
seem to be materializing and have signaled that they will not
agree to a "dash for the finish" by the end of 2004.

This discontent is likely to emerge strongly at a session on
Tuesday and Wednesday of the Trade and Development Committee
which is discussing how the current system of providing "special
and differential" treatment to poorer countries under WTO rules
can be extended.

"So far, we haven't seen much coming our way," said one
ambassador from a major developing country. "If they (the big
powers) don't give, we don't give either."

The major powers -- which also include Japan and Canada -- are
hoping for agreement at a ministerial conference set for Cancun,
Mexico, in September next year on starting discussions not
formally included in the round which are of special interest to
them.

These include possible agreements on WTO rules for foreign
investment, competition policies and customs practices which many
global companies want but which most developing countries see as
aimed at legalizing further intrusion into domestic policy areas.

Cynicism has also been heightened by the introduction this
year by the United States of heavy tariffs on a wide range of
steel imports -- an action which countries of the so-called
middle income group like Brazil and China. The announcement of a
huge new farm support program has also raised concern.

Thursday and Friday will see a session of the Doha round's
guiding body, the Trade Negotiations Committee (TNC), which will
be chaired for the last time by outgoing WTO Director-General
Mike Moore of New Zealand, with his Thai successor Supachai
Panitchpakdi looking on.

Supachai, a former Thai deputy prime minister and a renowned
economist, takes over on Sept. 1.

The TNC meeting, at which chairs of the seven overall
negotiating bodies set up in Doha will report on discussions so
far, "should give him a good idea if he faces only a very
difficult task to bring this plane down to a safe landing on
schedule, or whether it will be impossible," one trade diplomat
said.