New hope for WTO trade talks

Agriculture: one of the thorniest issues for the WTO

There is growing - but still cautious - optimism that a new global round of trade talks can be opened at the World Trade Organisation's ministerial meeting in just nine weeks time.

This process has moved us closer to a road map that could lead to success

Robert Zoellick

Following a favourable outcome of the informal talks in Mexico City over the weekend, several trade representatives will now tackle agricultural issues at the meeting of the Cairns Group of agricultural exporters in Uruguay from 3-5 September.

Farming subsidies and agricultural protectionism are amongst the thorniest issues in the negotiations that lead to the proposed new round of global talks to remove trade barriers.

The director general of the WTO, Mike Moore, has said that a new round of talks is essential, and that failure would condemn the WTO to a long period of irrelevance.

"I think we edged forward," Mr Moore said after the two-day meeting in Mexico City. "But there are still substantial differences in many areas."

Developing countries still unconvinced

But from the developing world, the attitude was more cautious.

India's trade minister, for instance, admitted that some progress had been made - but warned that the list of outstanding issues remains very long.

"We have 93 items that for the last three years have been on the WTO table," said Thiru Murasoli Maran. "Today we expressed very strongly that these implementation issues must be considered."

Proper responses on Indian and other concerns have yet to arrive, he said.

Many developing countries are beginning to work together to prevent the next set of talks due in Doha, Qatar, in November - should they take place - from focusing on new issues.

The priority for them, many have made clear, is to deal with outstanding issues, most of which are the ones which might benefit poorer countries.

EU under fire

The US, the Cairns Group of 18 agricultural exporting nations and many developing countries want the EU to eliminate export subsidies on agricultural produce.

Many food producing countries say their farmers are put at a disadvantage because of the EU's subsidies.

WTO meeting in Seattle: hit by protests, ending in failure

US trade representative Robert Zoellick has been invited to take part in this week's meeting of the Cairns group, and is expected to continue talks with Australia's trade minister Mark Vaile over exports of lamb.

Mr Zoellick said that progress on agriculture had been made in Mexico, added that this could hold the key to resolving other difficult issues in time for a new round of talks at the WTO November meeting in Doha.

"My view is that this process has moved us closer to a road map that could lead to success," said Mr Zoellick.

And EU Trade Commissioner Pascal Lamy called the talks in Mexico an "essential staging post on the road to Qatar".

Mr Lamy said the EU was ready to do more on agriculture, but stopped short of saying that export subsidies would be cut.

The Cairns group - made up of Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Fiji, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, the Philippines, South Africa, Thailand and Uruguay - together account for about one third of the world's agricultural exports.

Patchy record

The WTO tried and failed to launch a fresh round of trade talks in 1999 at a meeting in Seattle.

That meeting was accompanied by large scale demonstrations on the streets.

There were also deep divisions that could not be resolved between the WTO's member countries about what should be on the agenda.

And the meeting ended without any agreement.

The WTO is now desperate to iron out disagreements and allow the new round of talks to be launched in November.