Davos May Help WTO
January 27, 2007
The excitement is growing as leading trade negotiators began gathering for trade talks at the Swiss ski resort of Davos Saturday, with Europe's top trade official Peter Mandelson suggesting a breakthrough within a month.
"I believe we can get a breakthrough on the big numbers in agriculture and industrial goods in the next month or so," the European Trade Commissioner told the Financial Times newspaper. "The agricultural consultations between the EU and the US are through the worst.... We are approaching the endgame in that regard."
About 30 trade ministers will get together to discuss the Doha round of World Trade Organization (WTO) talks which was suspended last July because of differences between the European Union, the United States and emerging countries.
Hopes of an agreement in the snowy Swiss mountains have been played down but some such as German Chancellor Angela Merkel whose country holds the rotating G-8 and EU presidencies remain hopeful that major progress in the five-year-old round of talks could be made shortly.
"The chance for success is undoubtedly there," she told reporters. "I think that all the players have to be ready to exhibit a bit more flexibility."
Bridging differences
More than 60 chief executives and chairmen have stepped up the pressure on trade chiefs by issuing a joint statement urging leaders in rich and poor nations to bridge their differences within weeks.
"We are united in our concern that failure to restart the Doha Round discussions immediately and conclude them within the next six months will seriously damage the global community," said an endorsed statement from the International Business Council, issued at the Davos meeting.
The Doha round was suspended by WTO director-general Pascal Lamy in July following five years of acrimonious meetings.
The round, which aims to break down trade barriers for the benefit of developing countries, is blocked because of differences between the EU and the United States on farm issues, and discord between rich and poor countries about trade in industrial products and services.
"Agriculture is holding up everything" one WTO official told reporters. "When that gets done, other dominoes have to fall into place fairly quickly."
US pessimistic
US Trade Representative Susan Schwab appeared to be more pessimistic about a breakthrough than Mandelson.
"I don't think we're looking at a breakthrough in the near term," the senior US trade official told AFP. "But I think we're making some progress and some of the key players really are engaging -- Brazil, the EU, the United States and other countries -- and that makes me cautiously optimistic that we are laying the groundwork for a breakthrough."
The major players in the trade talks -- Schwab, Mandelson and emerging country representatives Indian Industry Minister Kamal Nath and Brazilian Foreign Minister Celso Amorim -- were all in Davos for the World Economic Forum as of Friday.
"At the moment, we are not even on the road so we have to get back on it again and make a map for the future so that we start to reengage the WTO again," Nath told DW-Radio.
Roadblocks from Congress
Some believe the most that can be hoped for at the Saturday meeting is that the WTO's Lamy relaunches formal negotiations, making the talks active again.
Lamy has said he is also looking for a signal from leading nations of their readiness to begin again.
Even if a final agreement were reached, it would require political approval and would likely face opposition in the current climate, analysts say.