Developing powers mull softer trade stance

GENEVA – Developing countries such as South Africa, India, and Brazil are mulling a slightly softer stance in acrimonious negotiations over a new global trade treaty, diplomats said on Tuesday.

A discussion paper circulated by India suggests that emerging economies may accept bigger cuts to their manufacturing tariff caps in exchange for being allowed to shield certain products from competition. The paper also calls for developed countries to slash their maximum tariff rates more than was suggested in a negotiating text circulated in July by Canadian ambassador Don Stephenson, who chairs the World Trade Organisation ndustry talks.Manufacturing, called NAMA for Non-Agricultural Market Access in trade speak, is one of the thorniest issues in the beleaguered negotiations over a new WTO liberalisation accord.The Doha round was launched six years ago in Qatar to boost trade in farming, industry and services and help poor countries export more.But the talks have bogged down on countries’ concerns over exposing their key markets to more competition.Developing nations sparked sharp rebukes from the US and EU last week over their reticence in accepting a range of tariff-ceiling cuts, calculated using numbers known as coefficients, earlier proposed by Stephenson.His July text proposed coefficients of eight or nine for developed countries and of between 19 and 23 for developing countries.Smaller numbers mean deeper cuts to the highest-allowed tariffs on imported shoes, minerals, cars and other industrial goods.The new paper from India recommends a developed-country coefficient of five and suggests that developing countries may accept a coefficient of between 24 and 33, depending on the percentage of manufactured products excluded from the cuts.This, the paper says, would slash average rich-country tariff caps by at least 50 per cent from the current 5,9 per cent average.The countries making up the NAMA-11 bloc, which also includes Argentina, Egypt and Indonesia, had previously argued for a coefficient closer to 35 for developing nations.The Indian discussion paper has not been officially endorsed by the NAMA-11 members, diplomats said.Negotiations in agriculture, the other big obstacle to a accord, are continuing this week with diplomats haggling over issues including the size of cuts to farm subsidies and tariffs.Brazilian Agriculture Minister Reinhold Stephanes said the EU and US farm protections remained the biggest hurdle in the WTO negotiations.Asked if a global trade deal could yet be done, Stephanes said: “I don’t think so.”Countries need to reach consensus in all areas of the negotiations to finalise a Doha pact.WTO Director-General Pascal Lamy has urged the speedy conclusion of the talks to avoid spill-over into 2008, when the US presidential election is expected to make it hard for Washington to negotiate.Nampa-ReutersThe paper also calls for developed countries to slash their maximum tariff rates more than was suggested in a negotiating text circulated in July by Canadian ambassador Don Stephenson, who chairs the World Trade Organisation ndustry talks.Manufacturing, called NAMA for Non-Agricultural Market Access in trade speak, is one of the thorniest issues in the beleaguered negotiations over a new WTO liberalisation accord.The Doha round was launched six years ago in Qatar to boost trade in farming, industry and services and help poor countries export more. But the talks have bogged down on countries’ concerns over exposing their key markets to more competition.Developing nations sparked sharp rebukes from the US and EU last week over their reticence in accepting a range of tariff-ceiling cuts, calculated using numbers known as coefficients, earlier proposed by Stephenson.His July text proposed coefficients of eight or nine for developed countries and of between 19 and 23 for developing countries.Smaller numbers mean deeper cuts to the highest-allowed tariffs on imported shoes, minerals, cars and other industrial goods.The new paper from India recommends a developed-country coefficient of five and suggests that developing countries may accept a coefficient of between 24 and 33, depending on the percentage of manufactured products excluded from the cuts.This, the paper says, would slash average rich-country tariff caps by at least 50 per cent from the current 5,9 per cent average.The countries making up the NAMA-11 bloc, which also includes Argentina, Egypt and Indonesia, had previously argued for a coefficient closer to 35 for developing nations.The Indian discussion paper has not been officially endorsed by the NAMA-11 members, diplomats said.Negotiations in agriculture, the other big obstacle to a accord, are continuing this week with diplomats haggling over issues including the size of cuts to farm subsidies and tariffs.Brazilian Agriculture Minister Reinhold Stephanes said the EU and US farm protections remained the biggest hurdle in the WTO negotiations.Asked if a global trade deal could yet be done, Stephanes said: “I don’t think so.”Countries need to reach consensus in all areas of the negotiations to finalise a Doha pact.WTO Director-General Pascal Lamy has urged the speedy conclusion of the talks to avoid spill-over into 2008, when the US presidential election is expected to make it hard for Washington to negotiate.Nampa-Reuters