Bridges Weekly Trade News Digest • Volume 8 • Number 17 • 13th May 2004
LDCs Agree On Doha Round Positions
The trade ministers of the least-developed countries (LDCs) — meeting in Dakar, Senegal, from 4-5 May for the third LDC trade ministers conference — reaffirmed their commitment to the multilateral trading system and emphasised the need for the ongoing Doha round of trade negotiations to take their development concerns into account. The participants adopted the Dakar Declaration, which highlights priority areas for LDCs in the negotiations, tables proposals aimed at advancing their developmental and trade needs, and encourages WTO Members to intensify their efforts at reviving the talks.
Supachai asks LDCs to show flexibility
Addressing the meeting, which was organised to take stock of developments in the negotiations after the Cancun Ministerial held in Mexico in September 2003, WTO Director-General Supachai Panitchpakdi urged all Members to show flexibility (for the full speech see http://www.wto.org/english/news_e/spsp_e/spsp26_e.htm). He cautioned that a loss of momentum would directly impact priority areas for LDCs, such as the liberalisation of the cotton sector and agriculture. On the difficult ‘Singapore issues’, which contributed to the stalemate in Cancun — trade facilitation, transparency in government procurement, trade and investment and competition policy — he called on LDCs to "build in a little more flexibility" in their positions if consensus was to be reached. WTO Members are currently aiming to reach a framework agreement in the negotiations by July this year.
Dakar Declaration reiterates LDC priorities
The Dakar Declaration calls for export subsidies in developed countries to be phased out on a ‘fast-track’ basis. The Declaration also signals a wish for WTO Members to exercise restraint in applying technical barriers to trade and sanitary and phytosanitary measures to LDC exports. On market access, the Declaration expresses concern over the erosion of existing LDC trade preferences due to tariff reductions resulting from further trade liberalisation in the WTO context.
The Declaration further calls for the expeditious resolution of the issue of developed country cotton subsidies, which bring down world prices (see BRIDGES Weekly, 4 June 2003), and the implementation of the results of the cotton workshop held in Cotonou from 23-24 March (see BRIDGES Weekly, 31 March 2004).
Trade officials express hope
Speaking at the meeting, Pascal Lamy, the EU Trade Commissioner, stressed that the Doha talks could be revived and hoped the meeting would give the talks the needed boost. He addressed developing country and LDC needs specifically by saying that the G-90, a grouping of mainly LDCs and African countries, "should be able to benefit from all the results of the current negotiations in all the areas in return for consolidating tariffs and an agreement on trade facilitation".
Echoing the sentiments of many LDCs, Anwarul K. Chowdhury, UN Under-Secretary-General and High Representative for LDCs, Landlocked Developing Countries and Small Island Developing States, noted at the meeting that an interim WTO ruling against the US in a dispute settlement case on US cotton subsidies — if confirmed in the final ruling –"could have far reaching consequences for West Africa and on other agricultural products" (see BRIDGES Weekly, 28 April 2004).
To access the Dakar Declaration, visit http://www.enda.sn/english/dakardec.htm
ICTSD reporting; "EU woos poor countries with tariff pledges," FINANCIAL TIMES, 5 May 2004.