WTO

Stalemate in Geneva at WTO talks

Article published on the 2008-07-28 Latest update 2008-07-29 12:01 TU

U.S. Trade Representative Susan Schwab at the World Trade Organization (WTO) headquarters in Geneva.

Talks at the World Trade Organisation headquarters in Geneva entered their eighth day on Monday with little hope for agreement in sight. Differences between the United States, China and India are threatening to shatter what observers are calling a fragile deal. The deal wants to limit European farm subsidies to 80% and US subsidies to 70%, while Latin American agricultural goods would benefit from tariff cuts.

In an unusual public rebuke, a senior US trade negotiator named Beijing and New Delhi as culprits in blocking the deal late Monday, according to correspondent Dan Pruzin in Geneva.

"Their actions, the US official said, 'have thrown the entire Doha round into the greatest jeopardy of its nearly seven-year life,'" said Pruzin.

The official added that China was refusing to cut tariffs on key agricultural commodities, such as wheat, corn and cotton, where American farmers and farmers in developing countries have been in competition.

Meanwhile, the African, Caribbean and Pacific countries trade grouping said the 35% cut on banana exports agreed by EU and Latin American countries was unacceptable.

"We are very much concerned about the direction that a couple of countries are taking," U.S. Trade Representative Susan Schwab said during a break on the eighth day of World Trade Organization talks.

Speaking to RFI, Alistair Smith of Banana Link said the problem is unfair competition.

"Far more important than the levels of the tarif in the EU is the issue of... small scale farmers who are still involved in the international banana trade. That's unfair competition because of exceedingly low wages and poor conditions," he said.