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Trade officials dismayed over failure of Geneva talks
Trade officials have expressed their disappointment at the failure of the latest talks in Geneva aimed at liberalising global trade.
- Agencies
- Published: 09:26 July 30, 2008
Geneva: Trade officials have expressed their disappointment at the failure of the latest talks in Geneva aimed at liberalising global trade.
The high-level summit to salvage a global trade pact collapsed on Tuesday, after the United States, China and India failed to compromise on when poor countries could raise import tariffs on farm products.
Two officials said WTO chief Pascal Lamy had informed ministers that an agreement slipped away after nine days of talks aimed at a comprehensive deal to lower the tariffs and subsidies that hinder international trade.
The meeting had been working on a broad compromise that, in short, would have let poor countries sell more produce to rich countries while giving the developed world greater market access in developing countries for services and manufactured goods.
US Trade Representative Susan Schwab appeared downcast as she briefed reporters. She said negotiators were "so close on Friday".
Negotiators were hoping for a deal this week on farm and industrial trade, so that crisis-ridden WTO talks could be saved. They were launched in 2001, but have repeatedly stalled amid deep divisions between rich and poor nations.
Without a final deal, Europe will not be required to open up its farm markets to emerging powers in Latin America and elsewhere. Brazil, China, India and other fast-growing developing nations won't have to ease access to manufacturing imports from the rich world. And the US will not have to make any tough decisions on the billions of dollars in farm subsidies it pays out each to American growers of cotton, soybean, rice and other staples.
The debate over farm subsidies has taken on added significance amid the recent spike in food prices around the world. Poorer nations say the payments distort global farm markets and hinder the development of sustainable agriculture in the Third World.
But talks over the last nine days had brought consensus on many of the challenging problems that scuttled major trade meetings in Cancun, Mexico, in 2003, and in Hong Kong two years later.
A number of trade officials described the debate pitting the United States against China and India as one of principle — and not just hard economics. Others blamed a lack of courage for the standoff.
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