Africa moves to rescue global trade talks

MOMBASA – Efforts to rescue global free trade talks were put to the test in Africa yesterday when some of the world’s poorest countries sought common ground with the richest.

The meeting at a luxury resort on Kenya’s Indian Ocean coast aimed to help bridge the gaps between the United States, Europe and Africa which contributed to last year’s collapse of talks to promote free trade, seen as vital to the world economy. African states told European Union trade chiefs to open markets to goods grown by millions of peasant farmers if they are to win their backing to revive the talks.They were due to give the same message to US officials due in Mombasa later yesterday.”We’ve been so flexible so far and now we’ve reached a point whereby if we continue to be flexible we shall be breaking our backs,” Tanzanian Trade Minister Juma Ngasongwa told Reuters.The talks were held under the auspices of the World Trade Organisation (WTO), which sets the rules of global trade.They broke down because of disputes over rich countries’ farm subsidies and over whether to extend trade rules into new areas.At stake is a deal to remove trade barriers that the World Bank says could add more than US$500 billion a year to global incomes by 2015, lifting 144 million people out of poverty.Trade ministers from countries including Mauritius, Uganda and Morocco attended the start of the two-day meeting in Mombasa, but it appeared unlikely that all of the 18 or so African ministers invited would arrive.The European Union said it was bringing no new proposals to the meeting, saying it wants to encourage African countries to take a fresh look at the compromises it has already offered.”This is like a poker game,” said Arancha Gonzalez, spokeswoman for EU Trade Commissioner Pascal Lamy, who is attending the meeting.”Rather than asking for new cards, I think we should play with cards we already have”.The European Union, which pays lavish subsidies to its farmers, said it was willing to eliminate subsidies on exports of particular interest to developing countries to make it easier for them to compete in global markets.- Nampa-ReutersAfrican states told European Union trade chiefs to open markets to goods grown by millions of peasant farmers if they are to win their backing to revive the talks. They were due to give the same message to US officials due in Mombasa later yesterday. “We’ve been so flexible so far and now we’ve reached a point whereby if we continue to be flexible we shall be breaking our backs,” Tanzanian Trade Minister Juma Ngasongwa told Reuters. The talks were held under the auspices of the World Trade Organisation (WTO), which sets the rules of global trade. They broke down because of disputes over rich countries’ farm subsidies and over whether to extend trade rules into new areas. At stake is a deal to remove trade barriers that the World Bank says could add more than US$500 billion a year to global incomes by 2015, lifting 144 million people out of poverty. Trade ministers from countries including Mauritius, Uganda and Morocco attended the start of the two-day meeting in Mombasa, but it appeared unlikely that all of the 18 or so African ministers invited would arrive. The European Union said it was bringing no new proposals to the meeting, saying it wants to encourage African countries to take a fresh look at the compromises it has already offered. “This is like a poker game,” said Arancha Gonzalez, spokeswoman for EU Trade Commissioner Pascal Lamy, who is attending the meeting. “Rather than asking for new cards, I think we should play with cards we already have”. The European Union, which pays lavish subsidies to its farmers, said it was willing to eliminate subsidies on exports of particular interest to developing countries to make it easier for them to compete in global markets. – Nampa-Reuters