Lamy calls for concessions from G-4 and Japan to clinch Doha Round

New Delhi, July 2 (UNI) The World Trade Organisation chief today called for concessions from four key members of the trade body and Japan to accomplish the Doha Round of trade talks.

The Doha Round is virtually deadlocked after United States, European Union, Brazil and India ( G-4 ) failed to reach any agreement on agricultural subsidies and reduction in industrial tariff during the talks held at Potsdam in Germany last month.

Claiming what remains to be done in the Doha Round is '' small compared to all the proposals on the table,'' WTO director-general Pascal Lamy informed the UN Economic and Social Council in Geneva that '' there are billions of people who are counting on this (trade) deal to deliver on the millennium development goals.'' He said reaching agreement on agricultural subsidies depends on additional concessions from the United States equivalent to less than a week's worth of transatlantic trade. It depends on an additional handful of percentage reduction in the highest agriculture tariffs by the European Union and Japan. It also depends on an additional handful of percentage reduction in the highest industrial tariffs by emerging economies such as Brazil or India. '' All this to be done, not by tomorrow, but over a transition period of several years to leave space for a smooth adjustment,'' he said, adding '' the challenge is less economic than political.'' Lamy, however, accepted that trade-distorting agri-subsidies and high tariffs by developed counties on imports of agricultural and industrial products from developing countries favours developed countries. He added '' while the political decolonisation took place more than 50 years ago, we have not yet completed economic decolonisation.'' But at the same time the WTO chief said while trade is an essential ingredient, trade opening is not a panacea for all the challenges of development. Trade opening is necessary but not sufficient in itself to ensure benefits to people in developing countries.

He said increasing trade opportunities for developing countries and in particular the least developed countries ( LDCs), remain the most important contribution that the WTO can make to development.

But he said '' Today the Doha Round is at a crossroad: the path towards success or the slow move towards a deep freeze.'' He said if members wanted to conclude negotiations around the end of the year, they would have to make key progress in agricultural subsidies and tariffs on agriculture and industrial tariffs now.

On failure of four key WTO members ( G-4) to converge on these key elements, he said if they do not play a constructive role in the upcoming crucial multilateral negotiations in Geneva then it could prove fatal.

UNI