Davos date for trade chiefs

Date: 12/01/06

Many of the world's trade ministers will swap the sweltering heat of Hong Kong for the ski-slopes later this month (25-29 January) when they assemble in Davos in the hope of making further progress towards relaunching the Doha trade liberalisation round.

The so-called mini-ministerial meeting will take place at the World Economic Forum, a meeting of top business executives, government officials and intellectuals which takes place each year in the Swiss ski resort.

Trade chiefs have met in Davos in the past, but this time a formal all-day session with 25-30 ministers is planned. "Time is running out if we are to get agreement before President Bush's 'fast-track' negotiating authority runs out next year," one official said.

A full World Trade Organization ministerial meeting in Hong Kong in December failed to make more than token progress towards a new trade liberalisation round and now hopes are focused on reaching a basic agreement on so-called modalities by April.

Officials say that, after the Hong Kong meeting, market access for agricultural products, particularly to the European Union, remains the key sticking point. Unless it is resolved, the impasse will prevent progress in the other two pillars of the talks, industrial and services trade liberalisation.

European Trade Commissioner Peter Mandelson, who has the authority to negotiate on behalf of the Union, is facing a daunting challenge.

Europe has been singled out as the main obstacle to progress because of the constraints of the Common Agricultural Policy. The new EU budget accord has done nothing to ease those constraints. This, in turn, limits Mandelson's room for manoeuvre.

Preview of a full-day WTO mini-ministerial, to take place at the World Economic Forum in Davos (CH), 25-29 January 2006. Ministers were hoping to make further progress towards relaunching the Doha trade liberalisation round.