A New Schedule For DDA Modalities?

Geneva - World Trade Organization chief Pascal Lamy on Friday suggested a new game plan for concluding Doha Development Agenda negotiating modalities in agriculture and industrials by the end of the month, with concluding ministerial "green room" sessions beginning June 29 (WTD, 6/16/06).

But trade diplomats here are not ruling out the possibility of a second ministerial at the end of July if there is not adequate progress over the next two weeks, WTD has learned. The United States among other key players want agreement on agriculture and nonagricultural market access modalities to be wrapped up before the end of next month but there is a growing view that a modalities agreement is unlikely by then.

US diplomats here have indicated strongly to key trading partners that it would reject a "bad deal," trade diplomats said. But Assistant US Trade Representative for Agriculture Jason Hafemeister commented on Friday that the United States could go along with a July settlement.

Unless the United States can secure what it calls "real cuts" into both farm and industrial tariffs, it is unlikely that there will be an agreement this month, diplomats here say.

Visit to Washington

WTO Director General Lamy who visited with members of Congress, industry and agriculture groups and US Trade Representative Susan Schwab last week also seems convinced that there must be substantial real tariff cuts to move the negotiations to a successful conclusion.

In his communication, Mr. Lamy drove home the point that agreement on modalities is not the end of the Doha negotiations but remains a crucial component that would unlock differences in other areas. "This is a negotiation under the Single Undertaking, but, as we have discussed in the past, progress on these two key issues is absolutely essential to unlock other areas of the negotiations and to enable us to conclude the round on schedule," he stated.

The respective chairs of the agriculture and NAMA negotiations Messrs. Crawford Falconer and Don Stephenson will issue their wrap up reports on the state of the negotiations this week possibly today. After that, there will be various small-group meetings here hopefully culminating in a Hong Kong-type ministerial "green room" session starting on June 29.