Fresh hopes of ending trade talks impasse

Trade negotiators hope that a fresh round of talks, planned for June, will bring closer a deal on the six-year Doha Development Round for liberalising world trade.

Ministerial meetings between the influential G4 - the EU, US, Brazil and India - are planned for 10, 17 and 18 June when the four will attempt to agree a common position to take to the World Trade Organization’s (WTO) 150 members.

An agreement between the four could provide a basis for a deal and make possible the EU’s stated goal of concluding negotiations by December.

Since talks on the Doha Round began in 2001, the EU and US have been at the centre of a row over agricultural subsidies which has stalled talks.

EU trade diplomats hope that the G4 can reach an agreement on agriculture, access for non-agricultural goods and exceptions for poor countries.

After a meeting on the fringes of an Organi-sation for Economic Co-operation and Develop-ment gathering in Paris on 17-18 May, representa-tives from the G4 said that progress had been made on these key issues.

Proposals by the chair of the WTO’s agricultural committee, Crawford Falconer, to set an upper limit for agricultural subsidies is gaining ground, but exact levels have yet to be agreed.

The EU is calling on the US to improve its offer to cut agricultural subsides. It is also trying to ensure better access for non-agricultural exports worldwide.

With US elections less than a year away, observers say that a deal must be made now if there is any hope of US negotiators agreeing to controversial farm cuts.

On 30 June, the US president loses his ability to get a ‘fast-track’ agreement on trade deals, which forces Congress to vote on any agreement as a whole. There are fears that after the trade promotion authority expires, the Democrat-dominated Congress would pick any deal apart.

Within the EU, the European Commission is coming under sustained pressure from France, Ireland and Poland not to let talks be dominated by US domestic constraints.

The three EU member states have doggedly opposed attempts to improve the EU’s agricultural offer beyond that agreed by member states in September 2005. The offer included a 60% reduction in the EU’s highest tariffs, imposed maximum limits on agricultural tariffs and a committ-ment to eliminate totally agricultural export support if other trade blocs agree to do the same.

But the EU, US, Brazil and India are coming under increasing pressure to open their talks up to other WTO members. EU officials have expressed concern that the mounting pressure could derail any solution agreed by the G4.

Trade negotiators hope that a fresh round of talks, planned for June, will bring closer a deal on the six-year Doha Development Round for liberalising world trade.