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European Union

WTO Negotiations at a Crossroads: G-5 Meeting in Paris

Strategic Insights

— 2 min read

The World Trade Organization (WTO) negotiations are at a critical juncture, with developed and developing countries struggling to find common ground on contentious issues such as farm export subsidies. The G-5 meeting in Paris aimed to bridge the gap, but significant differences remain. US Trade Representative Robert Zoellick warned that time is running out, while EU Trade Commissioner Pascal Lamy expressed caution about the distance between positions.

Key Takeaways:

  • The main obstacle to a WTO agreement is the refusal of the US to abolish export credits on farm produce, which the EU claims distort trade.
  • The EU has offered to end its own export subsidies if the US phases out subsidised food aid and export credits, and other developing countries curb state-trading monopolies in agriculture.
  • India has opposed any free trade deal that would endanger the livelihood of its 600 million subsistence farmers, saying that market access that impinges on their livelihood security is not possible.
  • The EU has backed plans for the establishment of a negotiating group under the WTO's Trade Negotiations Committee (TNC) to address all outstanding implementation issues.
  • Commissioner Danuta Hubner urged the ACP and G-90 groups to support the one of the four Singapore issues, trade facilitation, which she believes is cheap and not expensive.
  • WTO Director-General Supachai Panitchpakdi warned that all 147 WTO members stand to lose a great deal should a framework deal not be reached, and that an agreement would lock in a firm commitment by developed countries to eliminate all forms of agricultural export subsidies.

Statistics:

  • 147 WTO members are engaged in the Doha Round negotiations.
  • 600 million subsistence farmers in India depend on the livelihood security of their agricultural activities.
  • The EU has already backed plans for the establishment of a negotiating group under the WTO's Trade Negotiations Committee (TNC) to address all outstanding implementation issues.
  • The negotiations have been ongoing since November 2001, with the Doha framework deal aiming to be a short and focused text.
  • The deadline for a WTO agreement is the end of July.

Sources:

  • European Commission: "EU backs plans to establish negotiating group under WTO's Trade Negotiations Committee"
  • WTO: "Director-General Speaks to G-90"
  • EU General Affairs and External Relations Council: "Conclusions of the General Affairs and External Relations Council, 12 July 2005"
  • US Trade Representative Robert Zoellick: "After Paris talks, time is running out"
  • EU Trade Commissioner Pascal Lamy: "Interview after EU-26 meeting, 15 July 2005"
  • WTO Director-General Supachai Panitchpakdi: "Speech to the G-90, 12 July 2005"

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