Moving Closer to a New Trade Deal?

Probably not. Since the stall of trade talks in Cancun in December 2003, world trade powerhouses have been exchanging polite letters seemingly making concessions. However, no new framework for global negotiations has emerged. As usual, the contentious points are subsidies on agricultural products, textiles, sugar, cotton, fisheries, and market assess.

On May 10, the EU trade commissioner, Pascal Lamy, wrote to the WTO outlining a plan to stop subsidizing farm exports. Not even all EU countries, France in particular, were enthusiastic about this move. An accord among WTO members on 50% of the topics in the Doha round of trade liberalization talks is possible by the July deadline, Lamy said on May 14, 2004, reported the BBC.

However, the US is expecting more concessions. Although the US is not expecting concessions on sensitive imports, such as beef, sugar and dairy products from the EU and on rice from Japan, Washington expects more generous liberalization on other imports.
Developing countries still hold a unified front on agricultural issues. The 17-nation Cairns group said it would ally with the G20 group of poorer nations to draw up a proposal they hope will be acceptable to all other WTO members, Canadian Trade Minister Jim Peterson said, BBC reported.

So, will we soon have another trade liberalization deal? It depends whether the trade powerhouses manage to cajole developing nations into opening their borders without doing so in return.

Read more: EU offers to end export subsidies, Endgame near in farm trade talks, Farmers hope for new Europe calm, WTO chief optimistic over talks, Dairy farmers North and South, Renewed Focus on Development? (January 23, 2004 post), Doha Development Round: The Useless Banter Continues (February 14, 2004 post)