BBC News | Sept. 12, 2003
World trade talks are hanging in the balance as negotiators attempt to break the deadlock on farm subsidies. As a third day of discussions gets underway in Cancun, Mexico, the United States and Europe is again expected to clash with a bloc of developing nations bent on re-writing world trade rules.
The so-called G21 group, which includes Brazil, China and India, wants a sharp cut in aid for farmers in rich nations.
The EU and US say poorer countries must agree to broader legal and commercial reforms in return for any concessions on farming.
Little progress
Observers say there is little chance of progress on other issues at Cancun until this has been resolved.
But late talks on Thursday made little progress, the World Trade Organisation (WTO) said. "I would characterize the discussion as being one in which there were really no alterations, or shifts or changes of any great magnitude at all," WTO spokesman Keith Rockwell told reporters.
He said Singapore Minister for Trade and Industry George Yeo, whose job is to close the gap, hoped to release fresh draft proposals on Friday.
Ministers representing 146 WTO members have until Sunday to overcome several obstacles holding up progress towards a new global trade deal.
Opening markets
On Thursday, the US delegation, led by US Trade Representative Robert Zoellick, was accused of trying to lure smaller countries into dropping out of the G21 with trade incentives - something it has vehemently denied.
But US and EU negotiators, who themselves have differences on farm trade reform, stress the G21 nations have yet to make known what they would be willing to do to open their own markets.
They also stress that the G21 position does not reflect that of every developing nation.
The US delegation says it is willing to cut farm subsidies and allow greater market access if other countries do the same.
EU Trade Commissioner Pascal Lamy told reporters the EU, which once opposed the abolition of export subsidies, was now prepared to negotiate with the G 21 on a list of products on which such subsidies would be removed.
"They have to come up with their requests," he said, stressing that the EU was still prepared to show flexibility in the talks.
'Unhelpful' comments
However, some observers insist the rich nations are working behind the scenes to undermine the G 21's position.
"The EU and US are making a show of playing the nice guys but behind closed doors the pressure is on. "If the talks collapse that is good news: it could open the door to more sustainable trade," Alexandra Wandel, Friends of the Earth's Europe trade campaigner said.
Such comments were branded "incredibly unhelpful" and "self-indulgent" by one European trade delegate, who did not want to be named.
'Distressing' talk
A spokesman for the UK delegation said it was far too early write off Cancun.
"We find this extremely negative talk from some people extremely distressing.
It is far too pessimistic to talk in those terms at this early stage", he told BBC News Online.
He said there would be some tough negotiations over the next 48 hours, but the UK remained convinced an agreement on farm subsidies would be reached.
The livelihood of poorer nations - and the future of the 2005 Doha trade round - depended on a successful outcome, he added.
Singapore issues
Also blocking progress at Cancun are the so-called Singapore issues - investment, competition policies, trade facilitation measures and government procurement.
While Japan, Canada and the EU are pressing for WTO negotiations on such questions, developing countries say the time is not right.
They are particularly opposed to the formulation of WTO policies governing cross-border investment, fearing such regulations would benefit multinational corporations at the expense of their own industries.BBC News:
