Trade talks struggle on as protests continue

Negotiators at the World Trade Organisation summit continue to struggle to reach agreement on an agenda against a backdrop of…

Negotiators at the World Trade Organisation summit continue to struggle to reach agreement on an agenda against a backdrop of street protests and a heavy police presence.

President Clinton's appeals for a successful conclusion to this week's WTO meeting have had a mixed reception from developing countries, especially on the controversial issue of labour standards.

Some ministers from developing countries were shocked when Mr Clinton said he favoured sanctions against countries that violate international labour standards. The Thailand Minister of Trade, Mr Supachi Panitchpakdi, warned that some ministers from the developing countries could even "walk away from any agreement on a new round" of trade negotiations.

President Clinton later backed away somewhat from his advocacy of sanctions given in a newspaper interview when he delivered his main speech to a gathering of WTO delegates. He denied that the US position on sanctions amounted to "a shield of protectionism" against countries with lower wages and working conditions.

READ MORE

Mr Clinton said that to pretend that labour standards are "not a legitimate issue in many countries is another form of denial which I believe will keep the global trading system from building the public support it deserves".

Before leaving Seattle he signed a convention on outlawing the abuse of child labour sponsored by the International Labour Organisation.

Mr Clinton also irritated some developing countries by showing sympathy for the aims of the peaceful protesters, while condemning all violence. Some ministers from poorer countries saw the protests by environmentalists as putting increased pressure on them to agree to stricter anti-pollution controls than they can afford.

The Minister of State for Trade, Mr Tom Kitt, expressed relief at the draft agenda put forward by the EU for discussion with the US and other WTO members. "On agriculture, the proposals fall within the already agreed EU position and that is crucial from an Irish perspective," he said in a statement.

The EU draft has the support of Hungary, Japan, Korea, Switzerland and Turkey. It proposes the "reduction" of agricultural export subsidies, whereas the US and the Cairns Group of agricultural exporters are demanding their "elimination".

This will be one of the main differences to be resolved before an agenda can be agreed. Antidumping is another problem, with the US adamant that the existing rules cannot be changed and Japan and developing countries accusing the US of abusing these rules to limit steel imports.

The EU and the US are in broad agreement on greater openness in the WTO procedures and rulings. Ireland's EU Commissioner, Mr David Byrne, is here in Seattle having discussions with non-governmental organisations (NGOs) on how consumers' rights should be protected in any new arrangements.

He told The Irish Times that it was not "sufficiently realised" by the public that the WTO and trade ministers were also trying "to increase the wealth of everybody" by liberalising trade. The claim by the NGOs that their considerations were not fully taken into account in the WTO was partly correct but could also be "exaggerated", Mr Byrne said.

But it was better to have these organisations inside the building talking to him and others rather than outside in the streets. There was the risk for those with legitimate concerns demonstrating outside "that their arguments would be set aside as those of extremists, which I don't believe they are." But "I prefer the rational engagement process", Mr Byrne said.

Civil rights groups are angry with the Seattle police and authorities at the way the curfews and protest-free zones are being enforced. On Wednesday about 400 demonstrators were arrested and charged with disturbances, but many of them said they were exercising their First Amendment right to freedom of expression by making a peaceful protest.