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Economic conditions

World Trade Talks on Brink of Collapse Due to EU and Japan's Intransigence

Strategic Insights

— 1 min read

The fate of the Doha round of trade talks hangs in the balance, with Prime Minister John Howard stating that the talks are "on the brink of collapse" due to Europe's failure to compromise on protectionist farm policy. Despite the US offering to phase out agricultural subsidies by 2013, the EU's refusal to make concessions has stalled the negotiations. The situation has become critical, with world leaders urging WTO chief Pascal Lamy to broker a deal before the talks completely fall apart.

Key Takeaways:

  • The Doha round of trade talks is on the brink of collapse due to the European Union's refusal to compromise on protectionist farm policy.
  • The US has offered to phase out agricultural subsidies by 2013, but the EU has failed to make adequate concessions.
  • The failure to reach an agreement is also attributed to Japan's intransigence on market access and the G20's refusal to cut protection on imported manufactures and services.
  • Prime Minister John Howard has expressed frustration with the EU's intransigence, stating that "the big stumbling block is the intransigence of the European Union".
  • Trade Minister Mark Vaile and other ministers have failed to reach any agreement after three days of talks in Geneva.
  • World leaders, including WTO chief Pascal Lamy, are urging a last-ditch effort to broker a deal before the talks collapse.
  • The Doha round of talks hinges on the willingness of the EU and Japan to give ground on market access, the US to slash its domestic support programs, and the G20 to agree to cut protection on imported manufactures and services.

Statistics:

  • 2013: The year by which the US has offered to phase out agricultural subsidies.
  • 3 days: The length of time that Trade Minister Mark Vaile and other ministers spent in Geneva negotiating without reach an agreement.
  • July: The month by which world leaders are targeting a resolution to the trade talks.
  • 20: The number of emerging developing powers, including China and Brazil, that make up the G20.

Sources:

  • Asia Pulse - Canberra, July 3
  • AAP - 03-07 1413

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