Associated Press | By Naomi Koppel | July 30, 2003
Trade and agriculture ministers wrapped up a meeting Wednesday, failing to resolve wide differences over farm subsidies and other thorny issues, but said they were glad to be talking at least.
"My sense is that some defrosting is happening, but we are not yet at the sort of global-warming drive that will be needed," said European Union Trade Commissioner Pascal Lamy.
The three-day gathering of 25 World Trade Organization ministers in Montreal was an attempt to smooth out differences between its 146 members ahead of a major meeting in Cancun, Mexico, in September. That meeting is a crucial staging point in negotiations on a global trade treaty that is supposed to be completed by the end of next year.
Members remain divided and inflexible not just over farm subsidies but also over how to reduce barriers to international trade in agricultural goods. Exporting countries like the United States and Australia want to see big cuts in farm subsidies and import tariffs, but importers like the European Union and Japan are offering much smaller cuts, insisting they still need to give some protection to their domestic producers.
"We had focussed and frank political discussions," said Canadian Trade Minister Pierre Pettigrew, who chaired the meeting.
Other ministers were less optimistic.
"We have got a major problem. It's going to be tough," South African Trade Minister Alec Erwin told reporters as he left the meeting.
The EU, which has just completed a major internal reform of its farm subsidy programs, told the meeting it would be prepared to cut its domestic support levels by 60 percent.
U.S. Trade Representative Robert Zoellick called that "a very important step ... but not an acceptable result."
However, he said, the EU was moving more than other countries. On Japan's position he noted: "If there were flexibility, it escaped me."
The United States and the European Union have started private talks to try to solve some of the biggest issues in agriculture, but accept that anything they agree still has to be approved by all the other countries.
"The two main trading blocs have to lead by example ... but it takes 146 to tango," said EU Agriculture Commissioner Franz Fischler.
But, he added, the EU isn't prepared to make all the concessions and there must be moves from other countries as well.
Indian Information Technology and Communications Minister Arun Shourie said he was happy with the EU-U.S. talks provided they are "transparent."
"We don't want to see any surprise, sudden draft texts," he told The Associated Press.
India also is adamant that it won't accept the start of new negotiations in areas like investment rules and competition policy, areas that the European Union claim are vital.
"The important way to make Cancun successful is to focus on the existing agenda," Shourie said. He added that India has the support of China in its position on many areas.
Only 10 working days remain for negotiators at the WTO headquarters in Geneva to solve the problems that have blocked their talks all year if they want to make Cancun a success.
"The support is good, the commitment is there. We know more about others' limitations than we did before," said Brazil's ambassador to the WTO, Luis Felipe de Seixas Correa.Associated Press:
