Trade talks highlight differences

By Andrew Walker
BBC business economics correspondent

Many oppose trade liberalisation

Six of the world's leading trade ministers have met in Geneva in an attempt to push forward WTO negotiations.

The verdict - some convergence in some areas, but in the most contentious subjects the differences remain wide.

The meeting on Friday and Saturday was the latest in efforts to prepare for a big conference of all the World Trade Organization's member countries in Hong Kong in less than two weeks' time.

A few weeks ago the most influential members were hoping to get a full outline for a trade liberalisation agreement to slash barriers to international commerce.

But more recently they have accepted that they won't be able to get that far.

Robust talks

The six meeting here in Geneva - the United States, the European Union, Brazil, India, Japan and Australia - acknowledged that they are still far apart on the central areas.

On agriculture and trade in industrial goods, the current obstacles concern cutting import tariffs; on services, it's about how much to change regulation to make it easier for foreign providers.

It sounds like the meeting saw a pretty robust exchange of views.

The Brazilian Foreign Minister Celso Amorim called it frank and honest and said that sometimes what one said wasn't what the other wanted to hear.

He said they can't delude themselves, that their mandates - what their governments allow them to concede - are limited.

Mr Amorim said they would all need to make an effort with their leaders, presumably to get more negotiating flexibility. He also said progress in these areas was more likely after the Hong Kong meeting than during it.

Trade opportunities

Brazil hopes progress will be more likely after the Hong Kong talks

Where the six did say there was 'convergence' was on the concerns of some of the poorest countries, although none of them were represented at the meeting.

The European Trade Commissioner Peter Mandelson said a lot had been 'locked in'. Mr Amorim also said there had been a large degree of convergence.

Many of these poorest countries fear being sidelined. There are several elements to address that concern that are likely to be present in any final deal - assuming these negotiations reach a conclusion, and they might not.

They are likely to be offered more tariff-free access for their goods to rich country markets and to some of the more advanced developing countries.

Critics say the benefit of preferential access they already have is limited by restrictive rules. Reform of those rules is another likely element.

Aid to help the poorest countries take advantage of new trade opportunities was another element mentioned by Mr Mandelson.

Several ministers also acknowledged a concern called 'preference erosion'. If trade barriers are lowered for all countries, the advantage conferred by preferential deals is eroded.

Bite the bullet

But even in areas where there is some convergence of views, none of it is done and dusted.

And the timetable is very tight.

In practice, if the final agreement is not done by the end of next year, changes in the way the US Congress deals with trade agreements could make it impossible to get approved.

The reduced expectations for the Hong Kong meeting have just put off the difficult decisions.

If there is to be a deal, governments will have to bite the bullet and offer to do things that will expose at least some of their workers, farmers and businesses to more competition.

Delaying it won't make the politics much easier.