WTO Trade Talks Enters Ninth Day in Tense Atmosphere

Crucial talks for a new global trade pact entered the ninth day Tuesday with the atmosphere was growing more and more tense amid a blame game triggered by the U.S. verbal attack on emerging economies.

The closed-door negotiations resumed in the morning after a marathon bargaining session among the seven key members in the World Trade Organization (WTO), namely the United States, the European Union ( EU), Japan, Australia, Indian, Brazil and China, dragged on into early hours of Tuesday.

Emerging from late-night battling, Indian Commerce Minister Kamal Nath told reporters that the good news was the talks would continue, failing to note any progress.

Nath said he had been hoping for progress on issues such as a further reduction of farm subsidies by developed countries and the special safeguard mechanism, a measure for developing countries to protect their domestic farming from import surges.

I am still hoping we will see some movement. I am still optimistic, Nath said.

EU Trade Commissioner Peter Mandelson told reporters that the ministers had held very intensive discussions.

We work and will continue on what is a very, very complex and sensitive, he said.

Ahead of the meeting Monday evening, WTO spokesman Keith Rockwell painted a pessimistic picture of the ongoing negotiations, which had passed the planned schedule of one week.

The situation is very tense. Things are finely balanced and the outcome is by no means certain, he said.

Tensions peaked Monday after the U.S. pointed fingers at India and China, blaming the current deadlock on the two emerging economies.

We are very much concerned about the direction that a couple of countries are taking, U.S. Trade Representative Susan Schwab said.

She said one party was against an agreement worked out Friday night by a majority of the seven trading powers, while another was now backtracking on an earlier commitment.

Although she did not name the two countries, the U.S. deputy head at the Geneva mission to the WTO, David Shark, pointed the finger at India and China.

I am very concerned it will jeopardize the outcome of this round, Schwab said.

The accusation was immediately rejected by India and China.

Developed countries are asking for flexibilities for commercial interests. Developing countries are looking to protect the poor and for provisions that will help them out of poverty, while developed countries are looking for provisions which will lead to greater prosperity, Nath said.

Chinese ambassador to the WTO Sun Zhenyu described the U.S. finger pointing as surprising, urging the world's largest economy to show flexibility instead of threatening developing countries.

We have tried very hard to contribute to the success of the round, Sun told delegates. It is a little bit surprising that at this time the U.S. started this finger-pointing.

They have to remember that this is a Development Round. If they cover all their sensitivities for themselves, and keep on putting threats on developing countries, I think we are going nowhere, the ambassador said.

India is demanding for more flexibility under the special safeguard mechanism, while China wants to protect certain sensitive agriculture products like cotton, sugar and rice from deep tariff cuts, which was allowed by the mandate of the Doha Round.

Both were supported by a large portion of poorer developing countries, while others said the demands are justified in light of food security and the still enormous numbers of small farmers that the two countries have to care for.

Source:CRIEnglish