EU, US pile pressure on emerging economies at WTO trade talks

GENEVA – The United States and European Union took aim at emerging economies at crucial WTO trade talks yesterday, warning them to open up their markets if the seven-year Doha Round is to succeed.

EU Trade Commissioner Peter Mandelson even implied an ultimatum, saying he had gone out on a limb on agriculture and stressing that agreement was now conditional on developing countries making “real” cuts in industrial tariffs. Mandelson, who is under strong political pressure, notably from France, to harden his stance on industrial issues, said: “They must be real.These cuts must provide some new market access in practice.”That is the political bottom line.Nothing else will work for us.Nothing else will close the deal.”The EU revealed it was prepared to go even further than hitherto on farm issues, offering to extend proposed cuts in its tariffs on farm produce to 60 per cent from 54 per cent.Earlier, Mandelson had said Europe was prepared to make “painful” cuts in its payments to farmers but only if it received guarantees of progress on other topics such as industrial tariffs and services.”We are prepared to offer more than others in this round, but everyone must understand that we need something in return,” he said.Ministers from 35 key nations began critical talks under the aegis of the World Trade Organisation in Geneva yesterday after seven years of confrontation and crisis.US Trade Representative Susan Schwab called on emerging markets to play their part in the process.She highlighted the “fundamentally critical role” of the emerging markets to the Round, noting that much of the developing world itself did not have access to the rapidly emerging markets.”Seventy per cent of the tariffs paid by developing countries are paid by other developing countries, they aren’t paid by developed countries,” she said.The “vast overwhelming contribution” had to come through market liberalisation rather than subsidy cuts.An already difficult situation was not helped over the weekend by a remark by a Brazilian minister, comparing the tactics of advanced countries to the methods of the Nazi propaganda chief Joseph Goebbels.Celso made his contentious comment at a news conference on Saturday in response to claims by the industrialised countries that they had offered concessions on agricultural tariffs.He said those claims reminded him of a remark by Nazi propaganda chief Joseph Goebbels that “if a lie is repeated enough times, it becomes the truth.”Nampa-AFPMandelson, who is under strong political pressure, notably from France, to harden his stance on industrial issues, said: “They must be real.These cuts must provide some new market access in practice.”That is the political bottom line.Nothing else will work for us.Nothing else will close the deal.”The EU revealed it was prepared to go even further than hitherto on farm issues, offering to extend proposed cuts in its tariffs on farm produce to 60 per cent from 54 per cent.Earlier, Mandelson had said Europe was prepared to make “painful” cuts in its payments to farmers but only if it received guarantees of progress on other topics such as industrial tariffs and services.”We are prepared to offer more than others in this round, but everyone must understand that we need something in return,” he said.Ministers from 35 key nations began critical talks under the aegis of the World Trade Organisation in Geneva yesterday after seven years of confrontation and crisis.US Trade Representative Susan Schwab called on emerging markets to play their part in the process.She highlighted the “fundamentally critical role” of the emerging markets to the Round, noting that much of the developing world itself did not have access to the rapidly emerging markets.”Seventy per cent of the tariffs paid by developing countries are paid by other developing countries, they aren’t paid by developed countries,” she said.The “vast overwhelming contribution” had to come through market liberalisation rather than subsidy cuts.An already difficult situation was not helped over the weekend by a remark by a Brazilian minister, comparing the tactics of advanced countries to the methods of the Nazi propaganda chief Joseph Goebbels.Celso made his contentious comment at a news conference on Saturday in response to claims by the industrialised countries that they had offered concessions on agricultural tariffs.He said those claims reminded him of a remark by Nazi propaganda chief Joseph Goebbels that “if a lie is repeated enough times, it becomes the truth.”Nampa-AFP