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What’s lacking is the ''right level political will'' to complete the talks, says USTR

GENEVA, Switzerland - 05/03/06 - US Trade Representative Rob Portman (USTR), serving in his present position for just a few more weeks, is in Geneva to try to get the long-stalled World Trade Organization (WTO) negotiations moving again.

Portman said he was disappointed but "not surprised" that the WTO negotiations, formally called the Doha Development Agenda, fail to meet the most recent April 30 deadline.

By that date, negotiators from the WTO's 149 member economies were supposed to
have agreed on modalities - specific formulas and deadlines - for reducing agricultural and industrial tariffs and domestic subsidies to farmers.

April 30 was only the most recent deadline that negotiators missed for agreeing on the modalities, or specific formulas and deadlines, for making such cuts in years ahead.

In the US view, the European Union (EU) and other wealthy markets need to cut sharply support payments to farmers and farm tariffs, and encourage the world's rapidly expanding developing countries to reduce their barriers to imported manufactured goods and services.

"We are deeply concerned at missing the 30 April deadline for modalities for agriculture and industrial tariffs, and the implications of this for the conclusion of the Doha Round," said Portman at a press conference yesterday in Geneva.

Joined by Australian Deputy Prime Minister and Minister for Trade Mark Vaile, the USTR said, "We now have a short time to make the necessary breakthroughs in the negotiations.  We know the essential elements for concluding the round."

According to Portman, "A successful conclusion is within reach, with the right level of political will."

Deputy US Trade Representative Susan Schwab, whom President Bush has nominated to succeed Portman, is also in Geneva, as is US Secretary of Agriculture Mike Johanns.
 
Bush has nominated Portman to be director of the Office of Management and Budget (OMB) in the White House.  Both nominations are subject to Senate approval.

Portman and Schwab are scheduled to meet with WTO Director-General Pascal Lamy and representatives of some WTO negotiating blocs.

Lamy has instructed participants to engage in vigorous, continuous negotiations until a scheduled month-long break at the end of July.

"The effort will be to try to figure out ways to break the deadlock and come to a resolution," Portman said, rebutting assertions that his upcoming departure from the USTR signaled the end of Bush Administration interest in completing the Doha round.

"To take this round forward we urgently need flexibility on all sides. We have agreed to work together and with other WTO Members as our top priority over coming weeks to find the various points of necessary flexibility and compromise well in advance of July," he said.

"I've seen in some publications that the Europeans are saying this is a sign that somehow the United States is backing off," said Portman. "I made it very clear that we're not backing off one bit."

The US "has done its part in proposing steep cuts in agricultural and industrial tariffs and domestic support for farmers," he said. "I think what we're asking is very realistic. It's not only realistic; it's the only way to meet the Doha requirement that 149 countries agreed to in 2001 and reaffirmed in 2004."

Nevertheless, the US position is not "take it or leave it," he said. 

For example, he said, the US could accept a compromise between the average 66% agricultural tariff cut from its own proposal and the average 54% cut from the proposal of the G-20 group of developing countries.

He said the more-prosperous developing countries also need to improve substantially their offers to cut industrial tariffs and open markets in services.

As always, the issue comes back to EU resistance to make real market-opening tariff cuts in agriculture, he said.

"I understand the EU has an issue with France, and there may be a few other countries in that category too who we don't hear from as much. The French have been quite outspoken that they will not budge," said Portman.

"I would just hate to see a minority, a small number of countries within one trading bloc that is understandably influenced by a small part of its economy, that is politically powerful, decide the fate of the Doha round," he added.

The WTO and US goal remains to conclude the Doha negotiations by the end of 2006, making it possible for the US president to submit an agreement to Congress before his Trade Promotion Authority (TPA) expires in mid-2007. 

Under TPA, Congress restricts itself to approve or reject a negotiated trade agreement, within strict time limits and without amendments.

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