Bridges Weekly Trade News Digest • Volume 7 • Number 43 • 17th December 2003
G-20, EC Agree To Intensify Doha Round Talks
The G-20 group of developing countries met in Brasilia from 11-12 December, and were joined by both WTO Director-General Supachai Panitchpakdi and EC Trade Commissioner Pascal Lamy. Focussing on the issue of farm talks, Supachai urged flexibility from all sides. The G-20 issued a joint statement with the EC at the close of the meeting, which noted that the parties had engaged in "fruitful" and down-to-business discussions and had agreed to intensify talks early in the new year in order to move the Doha round of trade negotiations forward and conclude by the agreed January 2005 deadline. While the meeting gave a symbolic boost to the Doha round and the relations between the G-20 and the EC, no substantive results or concrete compromises were reached.
After the close of the meeting, Brazilian Foreign Minister Celso Amorim said he invited other trading partners to engage with the G-20 the way the EC had, focusing especially on the US, which he felt had been the most significant absentee in the post-Cancun process. He also stressed the role of the G-20 as an "indispensable intermediary" in the international negotiations.
In related news, Brazilian President Luiz Inacio Lula da Silva suggested the G-20 form a free trade area. He said to ministers that "this does not mean we are placing the developed nations aside, as they will continue being fundamental. Rather, we are going to fully exploit the potential among us, which does not depend on the concessions of the rich countries". At this point in time, the idea of an FTA among the G-20 remains at the conceptual stage, although a number of G-20 countries already are moving towards freer trade among themselves.
The G-20 alliance was formed at the eve of the Cancun ministerial meeting, and comprises key developing country Members, including Brazil, China and India (see BRIDGES Daily Update from Cancun, 10 September 2003). The group seeks to provide a counterforce to the US and EC, focusing on the area of agriculture. While a number of small Latin American countries have left the G-20, other developing countries have joined, and the group now reportedly comprises 19 members.
To view the joint G-20/EC Press Communiqué, visit http://europa.eu.int/comm/trade/issues/newround/doha_da/jpc121203_en.htm
ICTSD reporting; "WTO chief looks for G20 flexibility," REUTERS, 11 December 2003; "G-20 regroups in Brazil to fight agricultural subsidies," EFE, 11 December; "Brazil proposes creation of G-20 free trade area," XINHUANET, 12 December 2003; "Amorim quer EUA junto ao G20," FOLHA DE SAO PAOLO, 13 December 2003.