WTO members split over textile trade

Published November 14, 2001

DOHA, Nov 13: The World Trade Organization ministers were struggling to clinch agreements on agriculture, textiles and environmental issues in what looked set to be difficult all-night negotiations on an agenda for new global trade talks.

As deal-making entered its last crucial hours, there was a danger the talks could flounder because of a hardline US position on textiles and the EU’s refusal to agree on a phase out of farm subsidies.

The WTO’s 142 members appeared to be focusing on protecting domestic farm and industrial interests despite appeals for flexibility from WTO director general Mike Moore.

In north-south rifts reminiscent of the WTO’s failed Seattle meeting in 1999, Asian and African ministers said their development priorities were not being properly addressed in Doha.

Pakistan and India were insistent that a final deal must include a promise by Western countries to give “growth on growth” — or speedier quota liberalization — to their textile exports.

The United States was standing firm against such concessions, with Portugal, Greece and Italy also insistent that their domestic textile sectors should not be “sacrificed” at the WTO.

But other nations in the EU said they were ready to consider Indian and Pakistani demands as part of an overall package.

Developing countries also voiced fears that EU calls for negotiations on environmental issues could spur green protectionism on Western markets.

In addition, Asian countries opposed the new WTO negotiations on competition policy and investment rules.

The EU came under fire on its farm export subsidies but France, which benefits most from the EU’s farm budget and has a stronger farmers’ lobby, remained adamant that it would not agree to eliminate such refunds.

French Farm Minister warned that the issue was a potential “deal-breaker” for Europe.

The wrangling came after negotiators reached a breakthrough agreement on improving countries’ access to affordable medicines.

But the deal which underlines governments’ rights to override drug patents to tackle public health crisis hinges on adoption of a final ministerial declaration in Doha.

AFP ADDS: The most menacing obstacle to a new round is a still a gaping rift between the European Union on the one hand and the United States and its allies on the other.

At issue is the future of agricultural export subsidies, which the EU has refused to eliminate despite pressure from the United States and nearly every other delegation here.

We are furious, a European delegate snapped after seeing the draft text, a document that contains the words “with a view to phasing out” in a paragraph on export subsidies.

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