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Home / Business

Doha success 'hinges on developing nations'

8 Jun, 2007 12:30 AM2 mins to read

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KEY POINTS:

OTTAWA - The onus for breaking the impasse in world trade talks is now on big developing countries, more than on the United States and Europe, Canada said today.

Canadian Trade Minister David Emerson said world leaders should seek an ambitious deal in the Doha Round of negotiations,
with deep cuts to tariffs and farm subsidies, and not settle for a weaker deal over complete failure.

"I think the Americans are close to where they have to go but they haven't gotten there publicly yet anyway. The Europeans are close; some of the developing countries are still not where they need to be," Emerson told reporters after a speech in Gatineau, Quebec, near Ottawa.

"I think the real test going forward will be some of the larger developing countries and to see how willing they are to make the necessary moves that will break the logjam."

EU Trade Commissioner Peter Mandelson expressed concern over an apparent hardening of positions as world leaders gather for a summit this week in Germany to try to push the talks forward to meet a goal of reaching a deal by year-end.

Some analysts have talked of a potential compromise deal, but Emerson warned against that route.

"If we don't have an ambitious outcome we really will not see much trade effect as a result of this agreement," he said.

"We actually have to see applied tariffs, real tariffs, fall significantly in order for this to be strongly beneficial to Canada."

World trade negotiatiors have missed several key deadlines as talks have become mired in arguments between rich countries and major developing nations like Brazil and India over how to bring down barriers to commerce, mainly in farm and industrial goods.

If countries fail to clinch a deal soon, the round of trade talks could be put on hold for several more years.

- REUTERS

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