Developing Countries Launch Strong Attack on Rich States in Free Trade Talks

Strategic Insights -

Leading developing countries on Monday launched a scathing critique of rich states, particularly the European Union, for being out of proportion in their demands for liberalization during the World Trade Organization (WTO) talks. The eight countries – Brazil, India, Indonesia, Namibia, Pakistan, the Philippines, South Africa, and Venezuela – accused the EU of giving little away in agriculture while demanding significant concessions from poorer states in industrial goods and services. The developing countries stated that they were being called upon to bear the burden of any new market opening, while the EU and other developed countries were seeking a round for free.

Key Takeaways:

  • The eight developing countries accused the European Union of being out of proportion in their demands for liberalization, citing the EU's refusal to make concessions in agriculture.
  • The countries stated that the EU was seeking a round for free, while they were being called upon to bear the burden of any new market opening.
  • The developing countries emphasized the importance of removing anti-development distortions in international agricultural trade, stating that this was central to progress in the WTO talks.
  • The WTO has abandoned plans for the Hong Kong conference to cap four years of hard bargaining with an accord on a detailed blueprint for a new free trade treaty.
  • The EU has stated that it can offer nothing more before the Hong Kong conference, and will need a major move by developing nations in industrial goods and other areas to reach a balance in the outcome.
  • The EU and developing country critics agree that the Hong Kong conference should deliver tangible benefits for the poorest WTO members, including an "aid-for-trade" package and duty-free access for their goods.

Statistics:

  • 148-state WTO has abandoned plans for the Hong Kong conference to cap four years of hard bargaining.
  • The WTO aims to meet the end 2006/early 2007 final deadline for a treaty boosting the world economy and easing poverty.
  • The current WTO talks have resulted in significant divisions, particularly over agriculture.
  • The developing countries stated that they were being called upon to bear the burden of any new market opening.

Sources:

  • Reuters, Geneva, Nov. 29: "Leading developing countries on Monday launched a strong attack on rich states in free trade talks..."