The Guardian | Charlotte Denny | October 10, 2001
The European Union and the United States are locked in a bitter dispute with developing countries which could threaten the launch of a new round of global trade talks next month in Qatar.
Developing country trade officials have expressed dismay that a draft negotiating agenda released last month by the World Trade Organisation fails to live up to western promises that the new talks will be a "development round" focusing on the needs of the poorest countries.
In a leaked response to the agenda seen by the Guardian, poor countries describe it as "extremely disappointing" and propose major changes. With a majority of the WTO's 143 members from the developing world, their opposition to the current negotiating text could block a new round.
The chief disagreements are with EU demands for talks on new issues like environmental protection in exchange for opening up its heavily subsidised agricultural sector and US reluctance to discuss developing countries' concerns about existing trade agreements. "In recent months there have been many statements made by the WTO director general and by our developed country partners about how the next phase of the WTO's discussion must be centred on development ... The present draft fails to do this," the statement says.
The proposed agenda fails to address the "inequitable distribution of benefits and losses, the lack of tangible benefits to poorer countries, the massive losses to poor countries and poor people from the continuous decline in commodity prices and terms of trade, or the threat to livelihood and jobs when small firms and small farmers are unable to cope with the flood of cheap imports," negotiators warn.
Brussels is not prepared to negotiate on cuts to its subsidy regime unless it can demonstrate to EU government strongly opposed to reform of the Common Agricultural Policy that it has gained something in exchange. Last month, Peter Sutherland, the WTO's former director general warned that the EU's insistence on putting new issues on the table could sink negotiations.The Guardian:
