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World Trade Organisation logo. Photo Courtsey: Wikipedia
World Trade Organisation logo. Photo Courtsey: Wikipedia

WTO deal still elusive as texts fail to break deadlock

Sun-Jun 01, 2008

Geneva / Agence France-Presse

The WTO has finally created unity among its 152 members -but unfortunately for head Pascal Lamy, the only thing all states agree on is that the prospect of a new trade deal is still as far away as ever.

Lamy said the publication of new texts on agriculture and industrial goods -key sticking points for nearly seven years of torturous negotiations -clarified remaining obstacles to an agreement in the Doha trade round.

"These revised negotiating texts illustrate clearly where convergence lies among the WTO members. We are getting closer to our end game," Lamy said.

The round was launched in the Qatari capital in November 2001 with the aim of reaching a deal by 2004. But it has foundered ever since, mainly over disputes between developed and developing countries on agricultural subsidies and industrial tariffs.

The WTO chief has long said a deal is "doable," and has made it clear he would like to see Doha wrapped up before US President George W Bush leaves office early in 2009. But his was a lone voice of optimism this week as key WTO members made clear their objections to the texts, casting further doubt on the likelihood of any imminent breakthrough.

"The new draft texts on agriculture and manufacturing are disappointing," said top US trade official Susan Schwab.

"Unfortunately recent developments in Geneva have moved the negotiations in the direction of less balance and less market access," she bemoaned.

The European Union has been a main advocate of trade liberalisation but there are increasing signs of hostility among some of its 27-member states.

Developing countries were also forthright in their criticism, with Indian Commerce Secretary G Pillai slamming proposed tariff cuts on industrial good as a "total mess" that need to be redrafted.

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