Washington Trade Daily | June 2, 2003
Evian - Trade and the Doha Development Agenda trade negotiations yesterday dominated the first day of the G-8 Leaders Meeting here when a dozen developing countries said the time has come for the wealthiest countries to provide them substantial market access - especially in farm products (WTD, 5/29/03).
The developing countries - who were invited for the first time as part of the "enlarged dialogue" by host-country France - made their frustration clear that the global trading system has failed to provide them with equitable results.
World Trade Organization Director General Supachai Panitchpakdi held bilateral meetings with leaders from some important G-8 countries, impressing on them the need to ensure that the DDA negotiations proceed smoothly. Particularly important is reaching agreement before the mid-September ministerial meeting in Cancun on negotiating modalities for market access in farm and industrial products and access to medicines by developing countries.
Brazilian President da Silva and Indian Prime Minister Vajpayee brought the inequities to the fore at the G-8 meeting - which is being attended by the heads of government of the United States, Germany, Japan, France, Canada, Britain, Italy and Russia. Both leaders said the countries must provide substantial market access in agriculture during the current trade negotiations by eliminating trade-distorting subsidies. Brazilian President da Silva noted that resistance to market access in agriculture at the WTO is coming from those that pay over $1 billion in farm subsidies daily. Without elimination of these subsidies, developing countries' stake in global trade will not improve.
President da Silva also met with European Commission President Romano Prodi, urging him to carry out substantial reform of the Common Agricultural Policy. He told President Prodi that the fate of the Doha negotiations would critically depend on farm trade reform -including the EU's own reform.
Vajpayee and da Silva
The Indian Prime Minister told his rich country counterparts to "set some benchmarks for monitoring and evaluating the outcomes of the Doha round in terms of concrete progress towards a global trading system which would promote development" - especially in the rapid elimination of tariff and non-tariff barriers to developing country exports, the phase-out of trade-distorting agricultural subsidies and removal of barriers to agricultural exports "while ensuring the livelihood of security of
billions of farmers in developing countries." He also called for removal of visa and non-visa obstructions to the free movement of natural persons across borders and access by developing countries to needed pharmaceuticals.
China President Hu Jintao conveyed to the industrial-country leaders that they must strive towards an equitable global trading system during the current Doha round. African leaders from South
Africa and Nigeria also urged the G-8 to provide more substantial market access in farm products.
Brazil, India and South Africa are planning to meet in Brasilia next week to discuss a common approach to trade issues and the formation of a free trade agreement between the three nations, WTD has learned.
Meanwhile, President Bush yesterday urged other G-8 nations to get their sluggish economic in shape and break down barriers to world trade, Reuters news service reported. He also called on other industrial nations to spend more on developing-country assistance and speed up African debt relief, Reuters quoted South African President Mbeki.Washington Trade Daily:
