European nations laud WTO deal

Published August 2, 2004

LONDON, Aug 1: European economic giants Germany, Britain and France warmly welcomed a deal on Sunday to salvage world trade talks but China complained developing countries were not satisfied and an environmental group hit at "empty promises".

German Economy Minister Wolfgang Clement said the 147-member World Trade organisation (WTO) had grasped the opportunity and achieved "a substantial step forward in world trade talks".

French Agriculture Minister Herve Gaymard told France Info radio it was a good and balanced accord that "consolidates the European common agricultural policy and does not question the reforms decided a year ago".

For Britain, the world's fourth largest economy, Trade and Industry Minister Patricia Hewitt described the accord as ..." a crucial step on the road to delivering a trade round that will benefit all of us, especially developing countries.

"An ambitious round is an important prize for the global economy and we must continue to make progress before next year's ministerial meeting." Trading powerhouse China was more stinting in its praise.

"Generally speaking, the framework (agreement) is not bad, though the developing countries are not fully satisfied," the official Xinhua news agency quoted Sun Zhenyu, China's ambassador to the WTO, as saying.

Mr Sun, who spoke in Geneva where the accord was worked out on Saturday, did not elaborate, but said China had played a positive role in promoting the negotiations. The agreement holds out hope for a final pact that would cut tariffs on agricultural and industrial goods, slash farm subsidies in rich countries and make it easier for financial and service industry firms to work across borders.

It puts talks back on track after a bitter collapse nearly a year ago in Cancun, Mexico that pitted developing countries like Brazil and India against rich WTO members such as the United States and the European Union.

FRIENDS OF THE EARTH CRITICISM: Environmental group Friends of the Earth criticized as "empty promises" the concessions made by Washington and Brussels on agriculture.

"The commitment to eliminate export subsidies credits is missing any substance as no end date is mentioned in the text," it said. The group also called the talks secretive and undemocratic because non-government organizations and many countries were unable to sit at the negotiating table.

Global charity Oxfam was also not happy with the result. "We are very disappointed. In effect these talks move us forward a few inches when we were expecting a few miles," said Justin Forsyth, Oxfam's policy director.

"In some areas, we actually could even have gone backwards." Japan, the world's second-largest economy and a major food importer, said that rather than an agreement being reached the deal meant negotiations were back on track.

Foreign Minister Yoriko Kawaguchi said: "It includes the elements needed to bring about a balanced final agreement, but at the same time allows for Japan to make its case on sensitive agricultural products at future negotiations, so I think we should rate it highly." Some sections of Japan's media, however, criticized the deal for vagueness. -Reuters

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