Associated Press World Stream | By Naomi Koppel | August 12, 2003
Developing nations gave a cool reception to a plan from rich countries to cut global duties, claiming the move would hurt them much more than wealthy nations.
Members of the World Trade Organization studied a proposal, submitted jointly by the United States, the European Union and Canada, for big reductions in the highest tariffs as part of the current round of trade liberalization negotiations.
"The objective is to try to get ambition to drive deeper cuts," Canadian Ambassador Sergio Marchi told reporters.
The proposal would set a ceiling on duties across the board - although the exact level would vary from product to product - but gives no specific figures. It would apply to all goods exported from one country to another except those treated as "agricultural."
But developing countries, who on average have higher duties than rich nations, say such a move would hurt them. While they agree that cuts should be made, they want to be able to retain high tariffs in some areas to protect domestic producers from foreign competition that could threaten domestic industries.
Pakistan was among the countries that said the joint proposal went "completely in the wrong direction," although the paper was welcomed by Eastern European and former Soviet Bloc countries.
Many countries also said they were unprepared to accept major reductions in tariffs on goods until they have guarantees that similar moves will be made in the area of agriculture, which is very important for a large number of developing countries.
In particular they want the European Union to make big cuts to its program of farm subsidies, which they say make European products unfairly cheap.
"In order to talk about ambition in industrials, we have to understand what is going to be the level of ambition in agriculture, especially in ... subsidies," said Mexican Ambassador Eduardo Perez Motta.
"If the EU is one of the co-sponsors of the paper that gives us some hope, because if they are being so ambitious in nonagricultural market access that might send the signal that they are going to be very ambitious in agriculture."
Talks in the hugely controversial area of agriculture look set to come to a head Wednesday evening, when the European Union and United States are due to report back to other WTO members on their private negotiations to reach a compromise on how far to go in cutting tariffs and reducing subsidies.
Negotiators are embarked on two weeks of frenzied talks in Geneva in an attempt to draw up a draft declaration to be signed by trade ministers from all 146 WTO members at a meeting in Cancun, Mexico, in early September.Associated Press World Stream:
