By FOSTER KLUG, Associated Press Writer
HONG KONG - Trade negotiators reached a breakthrough Sunday on a last-minute deal, likely averting a collapse of the six-day meeting that could have seriously crippled the WTO's credibility.
But the modest progress achieved in cutting trade barriers left some disappointed — and puts pressure on the WTO if it hopes to forge a global trade treaty by the end of next year.
The agreement was "not enough to make it (the meeting) a success, but enough to save it from failure," said EU trade chief Peter Mandelson, whose delegation came under heavy pressure during the gathering to open up Europe's farming market.
Outside, at least 5,000 demonstrators marched in an anti-WTO parade through downtown Hong Kong, a day after hundreds of protesters were arrested in one of the city's worst spasms of street violence in decades.
The demonstrators chanted "Sink WTO" as trade ministers from around the globe wrapped up six days of negotiations at a World Trade Organization meeting. The protesters claim that the WTO's attempts to open up markets benefit big companies and the rich at the expense of ordinary workers and the poor.
After all-night negotiations, delegates resolved the most contentious issue of the meeting: agreeing to eliminate farm export subsidies by 2013, according to a copy of the final draft that was circulated Sunday.
The tentative agreement, subject to final approval by all 149 member countries and territories at a meeting later Sunday, also addressed cotton export subsidies and a package granting the world's poorest nations special trade priviledges. Since the WTO is a consensus-based organization, an objection by even one member could torpedo a final deal.
But delegates appeared to be moving toward agreement.
Brazil Foreign Minister Celso Amorim said the draft was "reasonable" and hopes it will adopted by all WTO members later Sunday.
"We welcome it," said India's Trade Minister Kamal Nath. "It is focused and it strikes at various problems of developing countries."
Still, the draft represents a far less ambitious agreement than delegates had originally hoped to achieve in Hong Kong: a detailed outline for a binding global free trade agreement by the end of 2006, concluding the current round of development-oriented trade talks that began in 2001 in Doha, Qatar.
In a step that moves members toward that treaty, the revised text also sets April 30, 2006, as a new deadline to work out formulas for cutting farm and industrial tariffs and subsidies — the nuts and bolts of an eventual trade pact.
The draft agreement noted "the compelling urgency of seizing the moment and driving the process to a conclusion as rapidly as possible. We must maintain momentum. You don't close divergences by taking time off to have a cup of tea," it said.
Pushing back the date 2013 date for eliminating farm export subsidies was a key demand of the 25-nation European Union, which held out against intense pressure from Brazil and other developing nations to end the payments by 2010. Developing nations say the government farm payments to promote exports undercut the competitive advantage of poor farmers.
Brazil's Amorim was still satisfied with the agreement because it included a provision that a substantial part of the subsidies would go by 2010.
The final draft also calls on wealthy nations to allow duty-free and quota-free privileges to at least 97 percent of products exported by the so-called least developed countries by 2008.
In a victory for West African cotton-producing nations, the text retained an earlier proposal that rich countries eliminate all export subsidies on cotton in 2006.
It also represents a concession by the United States, a major cotton exporter, and U.S. Trade Representative Rob Portman had said the proposal would be a hard sell to U.S. lawmakers. Cotton growers in Burkina Faso, Benin, Chad and Mali say the U.S. farm aid drives down prices, making it impossible for small family farms to compete in international markets.
Portman was noncommittal, saying he had concerns about the final draft but hoped to end up with an acceptable version.
"Some members have concerns as we do, but in the end there is an overriding need to come together and work out our differences so I'm hopeful we can do that," Portman said as he headed from his hotel to the convention center after reading the draft. |