| Elevating Services?
Washington Trade Daily
Trade Reports
International Group
Volume 14, Number 45
Friday, March 4, 2005
Mombasa - Brazil yesterday clashed with the European Union and Switzerland during the informal meeting of trade ministers here over how to speed up work in the Doha Development Agenda services negotiations (WTD, 3/3/05).
The EU, Switzerland, India and the United States made a strong pitch yesterday for stepping up the profile of services negotiations, maintaining that members will have to accelerate work in the coming days. By the end of May, revised offers should not only be submitted but - more importantly - be improved.
But Brazil's chief trade negotiator Clodaldo Hugueney protested the excessive emphasis on nonagricultural market access and services, saying the Doha trade negotiations were supposed to be all about liberalization of trade in agriculture and on development. He challenged the EU contention that the services negotiations are in a crisis. The same members that are unwilling to move ahead on agriculture - particularly in the transparent issue of ad hoc equivalents - are now raising the antenna in NAMA and services, he charged.
Without movement in agriculture, members must not talk about accelerating work in other areas, the Brazilian stated.
EU trade commissioner Peter Mandelson shot back by criticizing Brazil for pursuing a one-issue strategy and not taking into consideration other areas of the Doha mandate. He said it is unacceptable for some members not to accelerate work in areas such as services and market access for industrials.
Switzerland backed the EU, saying every member has a right to pursue areas in which they have core interests.
India's trade minister Kamal Nath said liberalization of trade in services is beneficial to both industrialized and developing countries. He said the final outcome of the Doha talks will rest on the how successful the services negotiations become.
During the discussion, Hong Kong trade secretary John Tsang urged his colleagues to agree to a "standstill commitment" to bind their current offers made so far during the Doha negotiations.
South Korean Trade Minister Kim Hyun-chong proposed a two-dimensional approach - binding current market access offers and taking fresh commitments in infrastructure services, such as telecommunications, financial services, distribution, construction and maritime transport services.
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