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.