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Thursday, July 31, 2008

 

Philippines caught up in WTO crossfire

 
Small countries suffer as the United States and other world trade giants fight, Philippine officials said on Wednesday after global trade talks collapsed in Geneva.

“It’s a fight among what the United States wants, what Chi­na wants, what the US wants of other big countries—and it is difficult for a Third-[World] country like us [to have our voice heard],” Executive Secretary Eduardo Ermita told reporters.

Ermita said President Gloria Arroyo was awaiting the formal report of the Philippines’ negotiating team at the World Trade Organization (WTO) talks in Switzerland.

Trade negotiators failed to reach a global trade pact on Tuesday, with the United States and India sharply divided over a proposed special safeguard mechanism for the agriculture sector.

“The consequences, nevertheless, are expected to be greater for developing countries that are most vulnerable in the global economy,” Trade Secretary Peter Favila said in a statement.

“While seemingly citing it as a singular issue, the breakdown suggests more than a few remaining unresolved issues of deep concern to some members,” he added.

Ministers had struggled for more than a week to reach consensus on subsidy levels and import tariffs for a new deal under the WTO’s Doha Round, which has repeatedly foundered since its launch seven years ago.

A non-government group called the collapse of the WTO talks “a welcome respite for poor countries.”

“The ambition that has been driving these talks became too much and the aggressive push by the US and the European Union for more trade liberalization at a time of global food and fuel crises [became] too blatant for developing countries to take,” Stop the New Round! Coalition said in a statement.

The group said the negotiations in Geneva also bogged down “because developing countries gave more importance to protecting and supporting their agriculture and industries rather than being hijacked into a bad deal that would limit their development options.”

It urged the Philippine government to reject unfair trade deals whether in the form of multilateral packages such as Doha or agreements under regional free trade.

The Doha Development Round is the current trade-negotiation round of the WTO that began at Doha, Qatar in November 2001. Its objective is to lower trade barriers around the world, permitting free trade between countries of varying prosperity.

As of 2008, talks have stalled over a divide on major issues, such as agriculture, industrial tariffs and non-tariff barriers, services and trade remedies.

The most significant differences are between developed nations led by the European Union, the United States and Japan and the major developing countries led and represented mainly by India along with Brazil, China and South Africa. There is also considerable contention against and between the European Union and the United States over their maintenance of agricultural subsidies, which are seen to operate effectively as trade barriers.
-- AFP

   

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