Global Trade Negotiations Are Dealt Another Setback

By STEPHEN CASTLE
The New York Times
Published: June 4, 2008
BRUSSELS — Global trade talks have stumbled again after a frustrated mediator suspended negotiations over industrial goods, complaining that it was “pointless to continue” because diplomats were refusing to negotiate.
The halt in discussions to reduce industrial tariffs, demanded by Don Stephenson, Canada’s ambassador to the World Trade Organization, late Monday, could block a crucial stage of negotiations with a goal of striking an agreement between opening markets in agriculture and in manufactured products.
After seven years, the World Trade Organization’s so-called Doha trade round — named for discussions that began in the Qatari capital — is at a crucial junction if negotiators are to reach a global accord to reduce trade barriers and tariffs by the end of 2008.
Advocates of a deal say that the need for an accord has been made more urgent by soaring food prices, which have created unrest in developing countries, and by the credit squeeze, which has heightened the risks of a global economic slowdown.
The latest setback came after diplomats in Geneva failed to narrow differences over industrial goods after eight days of negotiations. Not one of the many proposals to open the markets of W.T.O. members further to industrial imports was agreed to during discussions.
“From where I sit, it is pointless to continue in this manner,” Mr. Stephenson said, according to Bloomberg News. The suspension may put pressure on negotiators to rethink their positions.
Discussions to reduce tariffs and subsidies on agricultural exports will continue next week. But with the parallel talks on agriculture and industrial goods closely linked, a holdup on one issue poses a serious threat to hopes of a successful conclusion of the overall talks.
“The progress made in nonagricultural market access to date is not sufficient for an accord,” said Keith Rockwell, a spokesman for the W.T.O.’s director general, Pascal Lamy.
Mr. Rockwell added, “Certainly the next few weeks will be extremely important in terms of the objective of getting this done by the end of the year.”
Until now most of the attention had been focused on agriculture, with the United States under pressure to reduce farm subsidies and the European Union to cut tariffs on agricultural products.
But the United States and the European Union have sought to increase pressure on emerging economies to compromise over industrial tariffs.
Attention will shift now to a meeting on Thursday in Paris, which will be led by Australia and will be attended by negotiators from Brazil, China, India, the European Union and the United States.