Deal unlikely at WTO summit

NEW DELHI – A deal on a new global trade treaty is unlikely to come out of next month’s World Trade Organisation meeting, but the Hong Kong summit won’t collapse like the previous meeting, India’s trade minister said yesterday.

WTO members are working on setting new deadlines for reaching key agreements – like those in agriculture and manufacturing – to prevent a repeat of the last summit in Cancun, Mexico, where trade talks collapsed in disarray because of disagreements over farm subsidies. While members at one point expected to reach a new deal in Hong Kong, “divergent and contentious issues” mean an agreement “will not be possible,” Indian Commerce Minster Kamal Nath said in an interview with The Associated Press.His comments came as WTO Director General Pascal Lamy prepared a draft text for negotiations at the Hong Kong meeting that begins December 13.The text is likely to be finalised by the end of the month.Nath, along with US Trade Representative Rob Portman, EU Trade Commissioner Peter Mandelson and Brazil’s Celso Amorim, planned to meet in Geneva on Tuesday to make a last bid to resolve differences over farm subsidies that have blocked trade talks.Western countries spend hundreds of billions of US dollars a year supporting their farmers, subsidies that developing countries led by India and Brazil argue undercut the competitive advantage of one of their main revenue sources.Nath said developing countries will not be disappointed if no agreement is reached in Hong Kong so long as the negotiations seeking a new round of global trade liberalisation moved in the right direction.”We will certainly need to have some more sessions after Hong Kong at different levels to arrive at” an agreement, he said.- Nampa-ReutersWhile members at one point expected to reach a new deal in Hong Kong, “divergent and contentious issues” mean an agreement “will not be possible,” Indian Commerce Minster Kamal Nath said in an interview with The Associated Press.His comments came as WTO Director General Pascal Lamy prepared a draft text for negotiations at the Hong Kong meeting that begins December 13.The text is likely to be finalised by the end of the month.Nath, along with US Trade Representative Rob Portman, EU Trade Commissioner Peter Mandelson and Brazil’s Celso Amorim, planned to meet in Geneva on Tuesday to make a last bid to resolve differences over farm subsidies that have blocked trade talks.Western countries spend hundreds of billions of US dollars a year supporting their farmers, subsidies that developing countries led by India and Brazil argue undercut the competitive advantage of one of their main revenue sources.Nath said developing countries will not be disappointed if no agreement is reached in Hong Kong so long as the negotiations seeking a new round of global trade liberalisation moved in the right direction.”We will certainly need to have some more sessions after Hong Kong at different levels to arrive at” an agreement, he said.- Nampa-Reuters