Members of the World Trade Organisation (WTO) early on Sunday resuscitated talks that collapsed nearly a year ago when they agreed on an outline for a pact on some of the major disagreements, including ending farm subsidies.
The WTO’s 140 member nations approved the framework by consensus after gruelling talks in Geneva.
Although the vote was not on final agreements, WTO Director General Supachai Panitchpakdi called it ”truly historic” and said it greatly improves the chances for the completion of the talks that fell apart in September in Mexico and were aimed at liberalising trade.
”For the first time, member governments have agreed to abolish all forms of agricultural export subsidies by a certain date,” he said. ”They have agreed to substantial reductions in trade distorting domestic support in agriculture.”
The pact also commits WTO nations to lowering tariffs and subsidies on industrial goods, in the service industry as well as in agriculture.
Rich and poor countries have been divided on farm subsidies, with poor countries demanding an end to them so they can compete in the global market but with rich nations — including those in the European Union, the United States and Japan — baulking at scaling back their hundreds of billions of dollars in subsidies per year.
Under Sunday’s agreement, rich nations have agreed to reduce agricultural subsidies in the near term in return for the opening up of markets to manufactured goods. They also agreed to fix a date to end all farm subsidies and cut back tariffs on agricultural and industrial products.
Special rules will apply to developing countries, which will be given more time to reach deadlines and will be exempt from eliminating tariffs on particular products. The poorest countries will not have to lower their tariffs.
Specifics must still be ironed out and EU Trade Commissioner Pascal Lamy said the WTO is halfway to a final agreement.
US Trade Representative Robert Zoellick called the promises made at the end of five days of talks ”a milestone”.
”We have put the WTO negotiations back on track,” he said. ”We have laid out a map for the road ahead. Next, we will negotiate the speed limits for how far and how fast we will lower trade barriers.”
”There’s a lot of work yet to be done, but today’s framework is a milestone,” Zoellick added.
The latest round of WTO talks were launched in 2001 in Doha. The previous world trade pact was signed in 1994.
German Economic Minister Wolfgang Clement greeted Sunday’s framework as a measure that will lead to worldwide economic growth and employment.
”I’m happy that the WTO members took the opportunity to achieve substantial progress in this round of world trade talks before the elections in the US and the change in the European Commission.” — Sapa-DPA