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)