WTO Doha Round At Risk From Gridlocked Negotiations

by Ulrika Lomas, for LawAndTax-News.com, Brussels

24 April 2006

The WTO's Doha Round looks set to miss a key April deadline as the EU all but abandons its efforts to make a better offer and George Bush transfers feisty Trade Representative Bob Portman to be Budget Director.

World Trade Organisation director-general Pascal Lamy told a meeting of African Trade Ministers on Friday that the United States, the European Union, Brazil, Japan and India were to blame for the lack of progress. "There remains a need for movement by the big players," he said. "It is not that what is on the table is nothing, but it is not sufficient to reach an agreement."

In Brussels on Thursday, European Commission spokesman Peter Power told a news briefing: "The end of April deadline will be exceptionally difficult to meet." And US congressman Jerry Moran, chairman of the House Agriculture subcommittee, said: "It is clear to me that the April 30 deadline will come and go without significant agreement."

The April deadline had been seen as particularly important, because if the Doha Round, which began in 2001, is not completed by the end of this year it will be threatened by the expiry in mid-2007 of the fast-track trade negotiation mandate given by Congress to the President. Nobody thinks that the current fractious Congress will renew it.

Pascal Lamy on Friday praised Rob Portman for his contribution to the Round. Although he welcomed the elevation of Portman's deputy Susan Schwab to the top job, he must know that Portman's departure is a serious blow to the negotiations. He said: "I look forward to working with Susan as we enter a decisive phase in the negotiations, when key players will be asked to take bold moves, in order to secure a successful conclusion of the Round by the end of this year.”

Lamy has called senior negotiators to Geneva this week to assess progress and decide whether there is any point in assembling the Trade Ministers at the end of the month, as previously planned.

The major nations are all blaming each other for the impasse in talks. Deputy US Trade Representative Karan Bhatia said: "There has been a real trouble in getting some of our other partners to make (similar) ambitious proposals." But EU Trade Representative Karl Falkenberg said the EU had tabled strong proposals. Both parties, but especially the EU, need to make better proposals if there is to be any hope of unblocking the Round.

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