CAIRO: African ministers meeting with World Trade Organization Director General Pascal Lamy in Cairo stressed the urgency of forming a coordinated stance on the Doha Round of trade talks as the deadline approaches.
Egypt’s Trade Minister Rachid Mohamed Rachid – flanked by his counterparts from Mauritius, Tanzania, South Africa and Burkina Faso as well as Lamy – announced the unified agenda of the African nations, dubbed the “Cairo Message, to be presented at November’s WTO meeting.
The Cairo Message combines the diverse agendas of African countries at various stages of development, from least developed countries (LDCs), represented by Tanzania, to developing countries such as South Africa and Egypt, in calling for the swift and successful conclusion of the Doha Development Agenda, (DDA), or the Doha Round, in 2010.
Anxiety that the approaching deadline would not be met for the Doha Round, now in its eighth year of negotiations, Lamy in July called for “acceleration in order to implement trade policies conducive to development.
Concerns voiced at the Informal African WTO Ministerial Meeting included worries that the talks were “back-tracking, as stated by South African Trade Minister Robert Davies. Without laying specific blame, he drew attention to “attempts on the part of certain countries to redefine the rules of the game.
High on everyone’s agenda was the question of agricultural subsidies, specifically pertaining to the trade of cotton. The US in particular has expressed reluctance to reduce the protective subsidies that prevent international cotton producers from competing with American-grown. For Egypt, as well as many African countries, cotton represents a potentially significant source of income, should policies enabling the free trade of cotton indeed be passed with the conclusion of the Doha Round.
After Rachid announced that the African countries had reached consensus, forming a unified block with which to approach the rest of the WTO members in Geneva next month, he acceded the floor to Lamy.
“This is a crucial time in the life of the WTO, Lamy began, “The Cairo Message carries the urgent statement that a swift conclusion of the Doha Round is both necessary and doable, provided all are engaged. I welcome it as a signal that African ministers are ready to push for a deal that is good for them.
He clarified that November’s meeting will not include Doha Round negotiations, focusing instead on other WTO business, from addressing Aid for Trade programs to monitoring post economic crisis protectionism to expediting the membership of nine African countries waiting to join. He expressed his hope that developed members like Japan, the US and the EU would “show the same sense of determination to finish the talks and implement revised trade polices.
In a media roundtable after the press conference, Lamy told an Egyptian TV channel that the Doha Round is “nearly there and only “needs a push to reach conclusion.
He advised African countries who have hung their hopes on the Doha Round to make their markets more attractive by expanding regional trade.
Daily News Egypt asked the director general how the WTO can encourage developed countries to adopt policies that benefit developing markets but may hurt domestic producers. Lamy emphasized that the major developed countries have already made significant concessions, such as agreeing to reduce agricultural subsidies by 75 to 100 percent soon.
“Of course, ‘soon’ could mean one year or five years, and 75 to 100 percent is a wide range. But the developed countries have committed to these concessions.
Lamy pointed out that the WTO operates by consensus, and that membership requires willingness to negotiate, as well as the recognition that more developed countries can afford to take on more burdens than less developed, and that LDCs should receive no burden at all.
The US remains a lynchpin, although politicians have traditionally not risked unpopularity by tinkering with the Farm Bill, a provision that ostensibly protects small American farmers but often benefits powerful agribusinesses. Lamy’s statement that the US has agreed to lower agricultural subsidies is a sign that conditions are changing.
Asked whether the Obama administration has demonstrated the same openness to free trade as former president Bush, who had implemented “fast track negotiations, waiving Congress’ right of review, Lamy gave reassurances that “the US is negotiating, and fast track isn’t necessary.
Asked whether he considered the 2010 deadline realistic, he said it was “doable.
African ministers of trade appeared willing to trust Rachid to speak for them, an indication that despite a wide diversity of interests, the talks had indeed reached consensus.
Tanzania’s Minister of Trade Mary Nagu made a plea on behalf of the LDCs. “Our share of global trade is less than 1 percent. We need help.we want to have a competitive share in the cotton market, we need an advanced framework to deal with supply side constraints, we need better infrastructure.but we lack the institutions and the know-how.
She acknowledged that LDCs have been granted duty-free market access, but explained that due to regulations, they are not always able to benefit.
