Bridges Trade BioRes • Volume 4 • Number 1 • 22nd January 2004

WTO: US Surprise Initiative to Re-Start Trade Talks

Discuss this articleShare your views with other visitors, and read what they have to say

On 11 January US Trade Representative Robert Zoellick sent a letter to the trade ministers of WTO Members, aimed at re-energising talks. In particular, he outlined the US stance on agriculture, industrial goods, services, special and differential treatment (S&D) for developing countries and the Singapore issues of investment, competition, transparency in government procurement and trade facilitation. Zoellick, inter alia, suggested to start negotiations with market access in agriculture and said that a date should be set for the elimination of export subsidies, thereby putting much of the burden to restart negotiations on the EC. Furthermore, he supported substantial openings of markets in both developed and developing countries with competitive agriculture sectors, implying that major agriculture exporting developing countries could only be granted limited S&D. Nevertheless, he recognised the need to address the issue of cotton as a part of the agriculture negotiations, both from a trade and from a development perspective.

EC Trade Commissioner Pascal Lamy welcomed Zoellick’s letter as a “good move” and said that “it looks as though the two big trade blocs — the EU and the US — are beginning to think along the same lines”. He said the EC was ready to show flexibility in a number of areas, including the Singapore issues and geographical indications, and was ready to engage seriously on agriculture. Agriculture Commissioner Franz Fischler also commented on the letter, highlighting specific preconditions for reducing agricultural export subsidies. He also highlighted an EC proposal to phase out all export subsidies on sensitive products for developing countries.

Developing country trade officials generally welcomed Zoellick’s letter as a clear sign of renewed US commitment to the multilateral talks, but asked for more time to further study its strategic implications before they could come up with a more detailed assessment.

Mini-ministerial at Davos

Two dozen trade ministers will meet on 23 January in Davos, Switzerland, to discuss the 2004 WTO work programme, and ways out of the current deadlock. WTO Members are furthermore, expected to reactivate the Trade Negotiations Committee (TNC) and its negotiating bodies after a new set of chairs have been selected. The first meeting of the General Council is scheduled for 11-12 February.

For a more detailed account see BRIDGES Weekly, 14 January 2004.

ICTSD reporting; “U.S. Outlines Ideas to Revive Doha Round; Trading Partners Give Cautious Welcome,” WTO REPORTER, 13 January 2004; “Mini WTO ministerial planned on sidelines of Davos economic forum,” AFP, 13 January 2004; “US moves to restart stalled trade talks,” FINACIAL TIMES, 12 January 2004; “Brussels prepares to negotiate with US,” FINANCIAL TIMES, 12 January 2004.