Blair Urges Action On Trade Disputes

by Robin Pilgrim, LawAndTax-News.com, London

16 November 2005

Speaking on Monday at the Lord Mayor's Banquet in London, UK Prime Minister Tony Blair urged the United States and Europe to attempt to break the stalemate between them and move forward with international trade negotiations.

Talks ahead of the forthcoming WTO meeting in Hong Kong next month have stalled over the EU's offer for reducing barriers to farm imports, which countries such as the US, Brazil and Australia have deemed too small, but which, according to the EC, represents its best offer given opposition to further cuts by member states such as France.

In addition, the European Commission is seeking concessions from developing countries on removing or reducing barriers for industrial exports and services.

Mr Blair told those attending Monday's banquet at the Guildhall that:

"Of course trade ministers are there to negotiate. And of course the problems raised in the trade negotiations are difficult. But the Doha round is an opportunity to tackle some of the most fundamental injustices at the heart of world trade - an opportunity to create the conditions in which millions of people will have a chance to escape poverty."

"Ultimately, agriculture accounts for under 2% of the GDP of rich countries and roughly the same share of employment. Can we afford to allow differences over support for agriculture in rich countries to block an agreement that could give renewed hope to the 1 in 5 people in the world living on less than $1 a day? And can we afford to weaken an international trading system on which future employment and prosperity in rich countries depends?"

He continued:

"The US President recently threw down the gauntlet to the rest of the world in his speech to the UN in which he called for the removal of all agricultural and industrial subsidies, and said the US would do it if other countries did too. We must take up this plea and answer it."

"We need a comprehensive, ambitious agreement to cut barriers to trade in the three key areas: agriculture, non-agricultural market access, and services. The aim of Hong Kong has to be to create the conditions whereby, by the end of 2006 we can get there. To break the logjam, the EU and the US must go further, within the negotiations, on agriculture. We must reduce trade distorting subsidies; we must see a credible end date for export subsidies; we must put an ambitious limit on the number of sensitive products that can be afforded extra protection."

"In return Brazil, India and others must move on cuts in industrial tariffs, services liberalization, with proper flexibility for developing countries that need to sequence their commitments in line with their development needs."

Recommended