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Successful completion of Doha Round ''depends on willingness to open markets,'' says USTR

WASHINGTON, DC - 03/10/06 - The world's developed countries "must be more willing to come forward with market opening proposals if the World Trade Organization's Doha Round of trade talks is to succeed," according to US Trade Representative Rob Portman (USTR).
 
Portman spoke to reporters recently at a joint press conference with Australian Deputy Prime Minister and Minister for Trade Mark Vaile. The two had met for several hours of discussions, which included the first annual review of the US-Australia Free Trade Agreement (FTA).

The US "continues to have ambitious goals in core negotiating areas of the Doha talks, such as agriculture, nonagricultural market access and trade in services," said Portman.

"[W]hat's needed now is a contribution from every country, except those least developed countries.  Every country must step up and be heard," he said.  "The promise of Doha cannot be met unless all of us do our part."

Portman went so far as to set April 30 as the "drop dead date" for countries to agree on subsidy and tariff cuts for agricultural and industrial goods.

Member countries of the World Trade Organization have been talking since 2001 about a global pact to boost the world economy and help poor nations by lowering trade barriers but they now risk running out of time.

In mid-2007 President George Bush is due to lose his power to approve trade deals with minimal congressional involvement.

"We've been talking for four and a half years. Even if we didn't have the Trade Promotion Authority deadline, it's time to pull this round together," said the USTR. 

"I don't see how we miss that [April 30] date and still keep our summer deadline and then have time to finalize tariff schedules to be able to send an agreement forward early in 2007. So I think that's the drop dead date," said Portman.

Increasing market access, in both agriculture and nonagricultural trade, is the area that needs the most work, Portman said, welcoming the contributions on that front by the Cairns Group of 18 major agricultural exporters, which is chaired by Vaile.
 
But more effort is needed, he said, adding, "At this stage of the game I'm concerned, frankly, that other countries have not yet come forward with adequate market opening proposals."

Portman and Vaile are in London for the next few days for talks among influential WTO economies known as the Group of Six (G6):  the United States, the European Union, Australia, Brazil, India, and Japan.
 
"At our discussions this weekend we are hoping that we can resolve some of the current blockages that are keeping us from making progress," said Portman. 
 
Asked what kind of results he expected to see at the London meeting, Portman said he hoped some preliminary decisions could be held on work needed to achieve a framework agreement establishing conditions for agricultural and industrial tariff negotiations before the deadline of April 30.

That deadline was set at the WTO 6th Ministerial Meeting in Hong Kong last December.

"I don't think we want to raise expectations too high," said Portman. 

Vaile said successful completion of the Doha Round was also a key objective of the Australian government.  "We certainly don't want to see another extension of time as far as the round is concerned," he said.

"That means that key countries have got to make commitments now, particularly in terms of market access in both agriculture and nonagricultural products so that we can see a balance begin to develop."

Proposals from developed countries, said the USTR, "must indicate a willingness to lower tariff barriers and reduce domestic support and export subsidies enough to see real economic benefits for the global economy, and particularly for developing countries with a special interest in agriculture."

Expressing hopes that "the logjam" can be broken, Portman said that the entire issue is "a matter of political will," adding, "We know what we have to do."

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Korea, US Free Trade Pact ''Possible'' by Early 2007

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