Sanjay Suri | interpress
“The impasse has led to an apprehension that this round of talks that began in Doha in 2001 will not only be delayed further, but might actually get derailed.”
LONDON, Nov 8 (IPS) – An informal summit in London Monday night brought clear indications that little agreement can be expected at a meeting of ministers in Hong Kong next month to agree a new trade deal.
The ‘G4’ summit hosted by the Indian government in London brought together European Union trade commissioner Peter Mandelson, U.S. trade representative Rob Portman, and Brazilian minister for external relations Celso Amorim besides Indian commerce minister Kamal Nath. Japanese trade and industry minister T. Nikai attended as guest.
The mini-summit was called in another attempt to break the deadlock over the Doha development round of talks. The talks were started in Doha in Qatar to work out a new global trade agreement among member countries of the World Trade Organisation (WTO).
The talks have stalled mainly over refusal of the European Union (EU) and other developed countries to drop subsidies on agricultural goods. As the EU sees it, much of the problem arises because developing countries are not opening their markets to industrial goods and services from the developed countries.
Mandelson offered some concessions on subsidies and tariffs on import of agricultural goods. He offered to cut average EU agriculture tariff from 22.8 percent to 12.2 percent. He also offered a 70 percent reduction in agriculture subsidies. This ”bold offer”, he said, was as far as Europe would go. Several independent development groups said the offer was outrageously little.
Mandelson refused to budge from that position at the Monday talks. ”There is no change in the positions,” Kamal Nath told IPS after the meeting.
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