SWITZERLAND: World Trade Organisation states appeared to edge closer yesterday to putting stalled global trade negotiations back on track. Five core members agreed to points in the hotly-disputed text on agricultural reform.
After hours of hard bargaining, the US, the EU, India, Brazil and Australia, representing a host of trading interests, together proposed changes to a heavily-criticised first draft for a deal floated by chief mediators.
"I welcome this agreement on agriculture among five key members. This is an important input . . . and gives momentum to our efforts," WTO Director-General Supachai Panitchpakdi said.
But he warned that an accord among the five, even if they speak for a wide range of trade interests, could not guarantee the backing of the WTO's full 147-state membership.
As if to underline his words, arguments continued to rage over industrial tariffs just as differences were narrowing in agriculture, diplomats and trade officials said.
Richer nations are pressing developing countries to open their markets more to industrial goods as the price of farm reform.
The WTO has set itself until midnight tonight to seal an outline deal, or "framework", in four key areas - farm and industrial goods, services and a new customs' code - in an attempt to revive its troubled Doha Round of free trade negotiations.
Agriculture is widely seen as crucial to an overall pact and the accord among the "Big Five" included an EU offer to eliminate farm export subsidies that has provoked the wrath of France, which says the bloc has not been adequately compensated for its concession.
A deal would let the WTO say the round is back on track, but trade officials say failure may postpone for years trade liberalisation and its promise to boost the world economy.
"If we, the five, do not have agreement on the issues, it is hard to see how an agreement among the others can be found," EU trade chief Pascal Lamy's spokeswoman, Ms Arancha Gonzalez, told journalists.
However, a number of other members, including Switzerland and Japan, are suspicious at the leading role assumed by the five and have warned that they will not be railroaded into anything just because the big trading powers back it.
Officially, both the US and the EU were guarded in their comments, as the "Big Five" are anxious not to be seen as dictating any final WTO decision.
"The meeting has been useful and good," said Mr Rich Mills, spokesman for US Trade Representative Robert Zoellick, who took part in the talks along with his EU counterpart Mr Lamy.
Negotiators are struggling for accord on a framework for the next stage of the Doha Round, launched in the Qatar capital in 2001 but effectively derailed since the collapse of a WTO meeting of trade ministers in Cancun, Mexico, last September.
The central problem is farm trade reform, and the future of rich power subsidies.
In answer to developing country concerns, the five suggested leaving open how many "sensitive" products rich states could protect from imports after the first draft was attacked for being too generous to them.
The US agreed to negotiate more controls on subsidies, to prevent shifting farm aid between WTO categories - a key developing country demand, one diplomat said.
Washington would also agree to discuss further tightening use of farm export credits, although whether the offer went far enough to satisfy the French was uncertain, diplomats said.
Libya's agreement with the WTO to begin talks on admission will help the north African country speed up economic reforms, a top government official said. "The WTO decision is an opportunity for Libya to revamp its economy and improve production."
The Geneva-based WTO agreed on Tuesday to set up a working party on Libya, usually the first step on the road to entry for any country seeking membership. Talks could last for years.
Trade diplomats say approval for starting talks does not mean that Libya, eager to re-enter the global economic and diplomatic mainstream since its leader Muammar Gadafy pledged last December to scrap banned weapons, can expect an easy passage.
The talks will involve bilateral negotiations with any WTO country that fears Libyan exports could have an impact on its own markets or wants to ensure good terms for selling goods to Libya.
Libya plans to privatise a state-controlled economy largely reliant on oil and give the private sector a larger role.