www.agp.org | Archives - WTO info: Cancún | Southeast Asian Reactions Are Mixed To Trade Talks Collapse; Future Uncertain

MANILA--Southeast Asian countries expressed mixed reactions Sept. 15 to meltdown of World Trade Organization ministerial talks in Cancun, Mexico, over the weekend. The Philippines blamed rich nations for the deadlock and vowed to lead 21 developing countries in building a common strategy for the next round of talks scheduled for Geneva in December.

Thailand expressed indifference, saying it would focus more on bilateral negotiations with countries to pursue trade, while a disappointed Singapore warned that the collapse could have serious repercussions on the global economy since it may derail the end of 2004 deadline for trade liberalizations set in the Doha Round.

Philippine Agriculture Secretary Luis Lorenzo, who led Manila's delegation to Cancun, said the group of 21 developing countries represented in the Mexico meeting should "stick together" and pursue calls for agricultural reform.

Taken together, the 21 countries account for more than 50 percent of the world's population and should, given time, have a chance to be heard by rich nations led by the United States, Europe, and Japan, he said.

"We have a voice in America and Europe. This group should stick together," Lorenzo told BNA by phone as he prepared to return home from Cancun.

"Well, it has been agreed that there will be another round in December and we have three months to prepare for that. We can prepare a strategy together with these developing nations that were represented here," Lorenzo said.

Lorenzo Blames Rich Nations

He blamed the collapse of the Cancun talks on rich nations' continued refusal to cut domestic support, eliminate export subsidies, and open up their agricultural markets to developing countries. Lorenzo said that a big gap remains between agricultural subsidies offered by rich and poor nations to their farmers. The Philippines, for instance, spends less than $20 a year for individual farmers, while Thailand and Malaysia spend between $900 and $1,800 dollars, he said.

In contrast, farmers from Europe and the United States get anywhere between $60,000 to $100,000 in help from their governments, Lorenzo stressed.

The talks also centered on the so-called "Singapore issues," which proved to be the breaking point of the talks. Singapore, along with other developed economies such as the EU, Japan, and South Korea wanted a common rules system for four major areas, namely investment, competition, government procurement, and trade facilitation.

Filipino Trade Secretary Manuel Roxas, who was included in the exclusive "green room" negotiations that tried to finalize a work program but failed to break the impasse, said that poor nations opposed the issues presented because they could impinge on the nations' sovereign rights.

Recent Events Do Not Signal End of WTO

"The Philippines cannot agree to negotiations which will further impinge upon our sovereign right to determine the appropriate measures necessary to facilitate trade, investments, competition and improve transparency in government procurement," Roxas said, adding that new multilateral rules would have imposed further obligations to WTO members still catching up from their commitments. He said he was confident, however, that the Cancun discussions would be "the take off point when the WTO member nations meet again in Geneva."

"This does not mean the end of the WTO," Roxas said. "But by holding firm in Cancun, the developing member countries have served notice that they, too, want a say in the formation of [multilateral] rules to help make them more equitable."

Singapore's Ministry of Trade and Industry, however, said that it was "disappointed with the collapse" of the talks, noting that an agreement in Cancun would have "provided a boost to the global economy, through renewed momentum in trade liberalization."

"Failure of the Cancun negotiations has serious implications for the future of world trade," a ministry spokesman said, adding that progress "may have been set back by one of two years."

Singapore, one of the world's most ardent supporters of free trade, also called on both rich and poor nations to muster political will "to inject fresh momentum to the talks" in December.

Thai Prime Minister Thaksin Shinawatra, meanwhile, sought to downplay the collapse, saying his country would not be greatly affected since it would continue to focus on bilateral trade arrangements to sell its products.

"Thailand is not affected because we are focused on bilateral trade relations," Thaksin told reporters in Bangkok. "Multilateral cooperation is difficult because it is about negotiation."

Thailand has already established a range of markets for its goods and could ill afford to sit down and wait for global trade talks to be successful, he said.

"We are not opposed [to global talks], we support it, but an agreement must be reached for joint benefit, not just for the benefit of one side," he said.

By Jason Guiterrez

**********************************

In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

Southeast Asian Reactions Are Mixed To Trade Talks Collapse; Future Uncertain International Trade Daily Tuesday, September 16, 2003 ISSN 1533-1350 News WTO

Southeast Asian Reactions Are Mixed To Trade Talks Collapse; Future Uncertain
International Trade Daily
Tuesday, September 16, 2003
ISSN 1533-1350
News

WTO