Bridges Weekly Trade News DigestVolume 10Number 19 • 31st May 2006

In Brief



CARICOM WORRIED ABOUT MISSED DOHA DEADLINES, HIGHLIGHTS DEVELOPMENT CONCERNS

On 29 May, Guyanese Minister of Foreign Trade and International Cooperation Clement Rohee released to the press a statement on the Doha Round WTO negotiations on behalf of the Caribbean Community and Common Market (CARICOM).

The statement, which expressed concern over the missed 30 April deadline for agreeing on agriculture and non-agriculture market access (NAMA) modalities, was addressed to WTO Director-General Pascal Lamy, EU Trade Commissioner Peter Mandelson, US Trade Representative Rob Portman and the trade ministers of Brazil, India and Japan. Similar messages were also sent to the respective coordinators of the Least Developed Country and Africa Groups — Zambian Trade Minister Dipak Patel and his counterpart from Benin, Fatiou Akplogan.

Highlighting CARICOM’s interest in the Doha Round, Rohee said that although the region was interested in all areas, agriculture and NAMA were its priority areas. In agricultural market access negotiations, he noted the importance of the tariff reduction formula, long-standing preferences and preference erosion, sensitive products, special products and the special safeguard mechanism.

With regards to the Aid for Trade initiative, the minister said that CARICOM countries felt that such funds should come over and above existing assistance, should be guided by principles such as predictability and coherence, and "should be flexible enough so as to accommodate the needs of the targeted beneficiaries." Furthermore, CARICOM felt that there should be no new conditionalities which would render Aid for Trade ineffective.

Rohee concluded that while CARICOM remained committed to the multilateral process, and was ready to work with other members to realize the objectives of the Doha Round, the bloc expected the outcome of the negotiations to take development concerns into account. He cautioned that "it would be difficult for the region to accept anything less."

ICTSD reporting; "Rohee writes WTO players on failure to agree market access," STABROEK NEWS, 29 May 2006.

SUSAN SCHWAB’S APPOINTMENT AS USTR DELAYED AS PORTMAN MOVES ON

Congressional confirmation of Susan Schwab’s appointment as US Trade Representative has been stalled by US Senator Chuck Schumer (Democrat-New York) over concerns about how aggressive she would be in pushing China to open its markets. Schwab, currently Deputy US Trade Representative, was tapped by the Bush Administration to succeed Rob Portman when he was nominated in April for the post of White House Budget Director (see BRIDGES Weekly, 26 April 2006). The Senate confirmed his appointment on 26 May.

The Senate was expected to approve Schwab’s appointment last week, before the week-long Memorial Day recess. However, Schumer blocked a procedure which would have allowed her to be confirmed through a unanimous voice vote. Her nomination will now be subject to formal debate in the Senate as well as a roll call vote.

Schumer, joined by Senator Lindsey Graham (Republican-South Carolina), detailed his concerns and questions, largely about financial services liberalisation in China, in a letter addressed to the nominee.

"I simply believe that this is a very critical time for US trade relations, and I felt that your responses to several of my questions at your nomination hearing, particularly as they related to China and financial services, were unnecessarily evasive and unhelpful," Schumer said.

Schwab is expected to respond to the concerns raised in the Schumer-Graham letter before the Senate takes up her confirmation again. Administration officials have indicated that they are hoping this will happen when the Senate returns on 5 June.

Current US Trade Representative Rob Portman is expected to be sworn in to his new post at any time. An acting US Trade Representative may be appointed upon his departure.

ICTSD reporting; "Sen. Schumer seeks floor debate on USTR nominee" REUTERS, 24 May 2006; "Schumer to Delay Approval of US Trade Rep Nomination over Concerns on Trade Reciprocity in China," USTR RELEASE, 26 May 2006; "Schumer Bars Vote on Trade Nominee," NEW YORK TIMES, 26 May 2006; "Schumer to Delay Trade Nominee," WASHINGTON TIMES, 27 May 2006.