New WTO trade round vital after Seattle, says Supachai

By BRIAN FALLOW economics editor

It is essential that the world's trade ministers "keep their date" to launch a new multilateral trade round at Doha, says the Director-General designate of the World Trade Organisation, Dr Supachai Panitchpakdi.

Dr Supachai, who takes over from Mike Moore as WTO Director-General in September next year, is in New Zealand for talks with the Government and to address a conference on Asia in Auckland today.

Trade ministers are due to gather in Doha, capital of the Gulf state of Qatar, on November 9 to launch a new negotiating round - having failed to do so in Seattle in late 1999.

"If ever there was a time that a global conference was needed it is such a time as this, a time of great fear and uncertainty, when people have doubts about the consequences of globalisation," Dr Supachai said.

In Geneva, ambassadors to the WTO and its secretariat under Mr Moore had been doing their best to rebuild confidence, after the failure in Seattle.

"I think we are close to achieving our goals. We should eliminate most of the brackets [representing areas where agreement has not yet been reached] out of the text before the Doha meeting, leaving the final touches for the ministers."

It was important the round was not open-ended. It should be concluded within three years, Dr Supachai said.

That might mean that some areas, such as drafting international rules on competition policy and investment, needed to be pursued down a different track, allowing negotiators to focus on market access issues.

Stickiest of the remaining sticking points is the issue of trade and environment, which developing countries see as a threat of backdoor protectionism. The European Union had already adjusted its position, but further clarification was needed, Dr Supachai said.

Incentives, rather than trade sanctions, were needed for countries to improve their environmental performance.

On agriculture, New Zealand and other agricultural exporting countries are pressing for agreement to curb the use of export subsidies.

"The EU fully understands the need to move on implementing their reforms [to the common agriculture policy]," Dr Supachai said.

In a compromise solution to a fiercely fought race, Dr Supachai succeeds Mr Moore for the second half of the Director-General's six-year term.