WTO Agriculture Talks Encounter Obstacles But Continue

CONGRESSDAILYPMhttp://nationaljournal.com/pubs/congressdaily/dj050321.htm

GENEVA -- The World Trade Organization suspended a formal meeting on agriculture negotiations here late last week after countries failed to agree on a system of calculations for comparison of tariffs.

Tim Groser, the New Zealander who heads the WTO agriculture talks, called for the formal meeting last Thursday but then suspended it without setting a new date, according to a WTO official. Delegates have been trying to agree on a method of comparing tariffs so negotiators can move ahead with discussions of how to cut those tariffs. The official said Groser's decision to suspend the meeting rather than end it indicates his hope the delegates will reach agreement soon. Acting U.S. Trade Representative Peter Allgeier said after a recent meeting of trade ministers in Kenya he hoped U.S. intervention helped resolve conflicts between the European Union and the Cairns Group of countries led by Australia.

Delegates also said there were conflicts over negotiating points in their informal session Wednesday, a Geneva source said. The G-20 group of countries led by Brazil and India proposed the European Union make early, deep cuts in export subsidies it has agreed to phase out. Separately, at a meeting in New Delhi over the weekend, G-20 trade ministers also said agriculture export subsidies should be ended completely in five years. The European Union, Switzerland and Bulgaria said they expect concessions in 'geographical indications' -- the European system of granting exclusive rights to famous products where they are produced, such as wine from Bordeaux. But the 'exchanges were often bitter' when the United States, Costa Rica, Chile, South Africa, New Zealand, Bolivia, Pakistan and Argentina said the geographical indications had no place in agriculture negotiations and should be discussed in the intellectual property council instead, the source said.

Bulgaria said it would block an agreement negotiators hope will be completed at the trade ministerial meeting in Hong Kong in December if it does not get commitments on geographical indications.

Colombia and the United States proposed 'sectoral initiatives'under which countries would eliminate almost all tariffs and subsidies for certain products. Colombia proposed the initiative for flowers while the United States proposed it for pork, oilseeds, beef, barley, fruit and vegetables, some processed products, distilled spirits, whey and poultry. India, Kenya and Argentina opposed those, with Kenya claiming not all developing countries can compete on an equal basis. Groser told delegates the sectoral initiatives are 'what development is all about,'the source said.