WTO pursues agriculture, services liberalization

WTO pursues agriculture, services liberalization

JAKARTA (JP): Following its failure to launch a new round of
multilateral trade negotiations in Seattle last November, the
World Trade Organization is pursuing negotiations on agriculture
and services.

WTO secretary-general Mike Moore said here on Tuesday that
negotiations on agriculture and services would start soon and
they should benefit developing countries like Indonesia.

"That's pretty good because agriculture and services cover
more than half of the world economy," Moore said after speaking
at the Center for Strategic and International Studies.

The WTO General Council, which brings together ambassadors of
the 135 member countries, has agreed to open talks on services in
the fourth week of February, and on agriculture from the week
beginning March 20.

"Now we go to the next difficult steps, how we negotiate that
through. I think it's enormously encouraging because agriculture
and services are so important for all of us," Moore said.

"Particularly agriculture, for developing countries, has been
a tragedy. Agriculture has been such a political battleground.
Even in Seattle, we saw it again, a clash of great interests."

Agriculture was one of the thorniest issues in the WTO
ministerial meeting in Seattle, which collapsed without overall
agreement.

The United States and the Cairns Group of 15 agricultural
exporters -- including Indonesia -- are demanding the removal of
trade barriers, notably an end to export subsidies for farm
produce.

The European Union, which accounts for 85 percent of world
subsidies for agricultural exports, is firmly opposed to any
attempt to treat agriculture as a sector for open markets like
others.

On services, Moore said negotiations should proceed smoothly
because it was in the interest of every country to have free
trade on services to build a strong services industry, especially
the financial sector.

"Negotiations on services are of enormous value for countries
like Indonesia, which are getting more and more gains from
exports of manufacture," he said.

Negotiations on agriculture and services were mandated to take
place this year under agreements reached during the 1986 to 1994
Uruguay Round.

In addition, Moore said, he would continue with his agenda to
force developed countries to give market access -- such as import
tariffs or quotas -- to the poorest nations.

"We are trying to get together a package for the least
developed countries in terms of market access. This is a moral as
well as an economic imperative," he said.

Moore's plan to grant market access to the poorest nations was
among those discussed by the WTO ministerial meeting in Seattle,
but was shelved when the meeting collapsed without overall
agreement.

Moore said he still aimed at starting a new round of global
trade negotiations during his three-year term.

He said his two-day visit to Indonesia was part of his
campaign for the new round of negotiations.

During his stay here, Moore met with Minister of Agriculture
M. Prakosa, Minister of Industry and Trade Yusuf Kalla and
Minister of Foreign Affairs Alwi Shihab.

"I don't believe that WTO has paid enough time on Indonesia
and that's why I'm here," Moore said. "For Indonesia, areas of
excellence of textile, of agriculture. These are important if
there is a new round."

However, he said, differences between developed and developing
countries were still too great to start a new round of trade
negotiations after the Seattle debacle.

"At the moment, there is not enough flexibility to start a new
round. But there is a mellowing, there is an understanding among
member countries," he said. (rid)