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Saturday, January 26, 2008

 

President Arroyo renews
calls to step up Doha round

By Angelo S. Samonte, Reporter

President Gloria Arroyo renewed her call for pushing forward the World Trade Organization (WTO) Doha Round of talks during her meeting with a US official at the ongoing World Economic Forum in Davos, Switzerland.

Susan Schwab, the US Permanent Trade Representative to the WTO, had asked President Arroyo for the Philippines’ commitment “to have an ambitious outcome of the Doha talks,” said Trade Secretary Peter Favila, who was at the meeting Friday.

“The President says she is not changing her position,” Favila added. “In fact, she has called upon her colleagues in the Asean [Association of Southeast Asian Nations] to get this [Doha Round] moving forward.”

The so-called Doha Development Round, which was launched in the Gulf Arab state of Qatar in November 2001, aimed to demonstrate that economic cooperation, not terrorism, was the way to rebuild trust between the world’s rich and poor.

The Philippines belongs to G-33, a grouping of developing countries that seeks to advance the interest of poor countries in WTO.

During the Philippines’ chairmanship of the 12th Asean Summit in Cebu in 2006, Asean leaders approved Mrs. Arroyo’s proposal for an independent statement that reinforces the region’s commitment to the Doha Round of talks.

The leaders called for a fair and liberal global trade and offered tangible means to reduce poverty globally, particularly in the Asean region.

But negotiations in 2006 bogged down when industrialized countries refused to cut down their subsidies, particularly to their farming sectors.

The developing countries have been asking the developed ones to remove their agricultural subsidies to foster fair competition. They said such supports distort trade and artificially lower prices of their products.

Mrs. Arroyo is scheduled to meet with WTO Director General Pascal Lamy to push conclusion of an agreement that will reduce the amount of subsidies being extended by rich countries and provide developing countries wider access to the global market.

Hogging the 2006 negotiations was “the push for the US and the EU [European Union] to remove the market-distorting farm subsidies that have made it difficult for poor countries to compete in the global agricultural markets.” These talks also tackled “the question of market accessibility with much of the European and American markets protected by high tariffs.”

During the negotiations, the European Union claimed “that the US is not prepared to reform its own agricultural sector while the US is urging the EU to make major concessions of its own.”

   

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