
2010 is definitely going to be "Mother of All Recoveries .."
US, India break deadlock, clearing way for trade pact to conclude by 2010
By LEE U-WEN
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(SINGAPORE) After eight long years of frustrating starts and stops, the stalled Doha Round of trade liberalisation talks looks set to reach a conclusion in 2010, according to World Trade Organization chief Pascal Lamy.
This after the new trade representatives of the United States and India - Ron Kirk and Anand Sharma respectively - met for the first time on Tuesday to mutually agree to resume talks for a new global trade pact.
The closest that trade ministers came to securing a deal was in Geneva last July, but those talks collapsed after a dispute between the US and emerging economies led by India over proposals to help farmers in poor countries.
Washington had refused to accept India's demands for measures to protect vulnerable industries from a flood of cheap imports.
Speaking on the sidelines of a conference of agricultural exporters in Bali, Mr Lamy said: 'We had not had that clear signal of 'reset' until now. What I got from here is that ... yes, we should conclude this by 2010.'
The ministerial-level conference was attended by the 19-member Cairns Group, which accounts for 25 per cent of the world's agricultural trade and supports open markets.
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Mr Kirk added that the US was committed to outlining a new basis for negotiations by this August, when the WTO begins its summer break. 'We want to encourage our representatives in Geneva to try to engage in a more robust dialogue. We are eager to engage our colleagues,' he said.
The WTO members will meet in November to formulate a roadmap that will hopefully lead to the conclusion of the round, said Mr Lamy. About 80 per cent of the global deal has been completed, but major obstacles remained such as those involving tariffs and market access. Some countries want to protect vulnerable industries while others are asking for new markets.
Meanwhile, the WTO's director of information and external relations Keith Rockwell said that multilateral trade pacts such as the Trans-Pacific Partnership, a free trade proposal involving eight countries including Singapore, should be seen as 'supplementary' to the global trade system.
'(The WTO) is much more universal in terms of the number of countries involved. Very often the poorest countries are not parties to these agreements. and when they are, there is a certain disproportionate clout, and these countries feel it,' he told the Singapore media yesterday on the sidelines of his visit here to attend a workshop on trade negotiations.
'The WTO's agreements and negotiations tend to encompass a wider range of activity. You are not going to reduce agricultural subsidies in a bilateral or regional agreement. It won't happen. You won't be able to create a playing field that is global in nature.'
On the issue of the emerging risks of protectionism, Mr Rockwell said it was understandable why some countries were keen to look out for the welfare of their own citizens due to political pressure being heaped on governments.
'Protectionism is not protection. It doesn't protect anyone, but it hurts everyone instead. What is needed for people who are concerned about their livelihoods are social protections such as social safety nets,' he said.
'This would enable them to continue to receive healthcare, the ability to send their children to school ... or they could make use of a retraining system or receive some form of welfare that can help them until they get back on their feet.'