TWN Info Service on Trade and WTO Issues (July08/27)
22 July 2008
Third World Network

Trade: Schwab puts onus on developing countries for success at WTO
Published in SUNS #6522 dated 22 July 2008

Geneva, 21 July (Kanaga Raja) -- At a press briefing Monday, the US Trade Representative put the onus on "rapidly emerging developing countries" to offer new market access as the key to the success of the mini-Ministerial process at the WTO, and evaded specific questions as to whether the United States could improve its offer on reducing domestic farm subsidies since the prices of farm products are now so high.

To have a meaningful development outcome in the Doha Round, there is need to secure new meaningful market access in agriculture, manufacturing and services, and "rapidly emerging markets" are key to this negotiation in terms of the contribution that they can make to a successful outcome, said Ms. Susan Schwab on Monday morning at the WTO.

She also said that while the US was prepared to contribute with regards to its trade-distorting domestic support, its move on subsidies has been a convenient target for a lot of countries that would rather not get to the other parts of the negotiation, namely, the market access parts of the negotiation.

The US is committed to the outcome of this round, the USTR stressed, adding: "There is no question about that... We have been all along and will continue to be a leader in this round."

But she added that "to have a meaningful development outcome to this round... we know that we have to secure new meaningful new market access in agriculture, in manufacturing and in services," and that this is particularly with respect to "the rapidly emerging markets that are so key to this negotiations in terms of their involvement and in terms of the contribution that they can make to a successful outcome."

She also said that this is not the time for falling back on tired rhetoric designed to perpetuate old divisions or to create new ones.

Asked about the high price of commodities and whether it will help the US to put a new proposal on the table, Schwab said that on the question of high food prices, high energy prices and economic uncertainties in the world, a successful Doha outcome really can make a positive contribution.

The elimination/reduction of export restrictions on food is critical, she said, also mentioning that elevated food prices would enable countries to lower import barriers, lower subsidies, eliminate export subsidies, and use this negotiation to help reduce some of the distortions in the market, rather than use the situation in the market as an excuse not to act.

Asked about the obstacle of the US farm subsidies and whether there is going to be any movement on that following the approval of the Farm Bill, Schwab said that "we know that we have a contribution to make when it comes to our trade-distorting domestic subsidies. We will make that contribution. We know that we have a leadership role to play in this round.

"We also know that the US move on subsidies has been a convenient target for a lot of countries that would rather not get to the other parts of the negotiation, namely, the market access parts of the negotiation, whether in terms of agricultural market access or manufactured goods or indeed services," said Schwab.

She added that the US was prepared to make its contribution, but in the context of a successful round that has the promise of generating "new trade flows." +