July 02, 2006	Sunday	Jumadi-ul-Sani 5, 1427

ISLAMABAD, July 1: The G20 group of developing countries voiced concern over lack of movement by rich countries, especially the United States towards a meaningful reduction in trade-distorting domestic subsidies on agriculture.

As part of their effort to bridge the gap on various issues, the G20 ministers met at the sidelines of the mini-ministerial to work out their course of action. The meeting held on Saturday in Geneva was headed by Brazilian Foreign Minister Celso Amorim. Commerce Minister Humayun Akhtar Khan also attended the meeting.

An official announcement received here from the Pakistan mission to WTO said the second day of ministerial meetings in Geneva was a day of forging close coalitions and alliances between various developing countries’ groupings. In the wake of no breakthrough in negotiations thus far, developing countries felt the need to exert pressure on major developed countries for showing some positive movement.

The G20 ministers also want the developed nations to undertake substantial cuts in their agriculture and industrial tariffs with a view to facilitating better market access for products from developing countries as promised at Doha.

Humayun Akhtar Khan also attended the ‘green room’ ministerial meeting of selected countries conveyed by WTO chief Pascal Lamy. The ministers had intense discussions on the key areas of negotiations both agriculture and industrial tariffs -- the tiered formula for tariff reductions in agriculture including flexibilities and formula coefficients for reduction in industrial tariffs and flexibilities for developing countries.

The meeting, being the first of a series of such meetings planned for next three days, lasted for three hours, with very little movement from the US and the EU on their respective positions. The meeting will be reconvened in the evening and is likely to go on till late night.

Meanwhile, Humayun Akhtar also hosted a working lunch for key ministers with a view to continuing discussions and identifying options for bridging differences in various positions.

Mr Khan on the occasion said the moment of truth had arrived for the negotiations and real numbers needed to be negotiated in earnest by all; it is obvious that one number would not be acceptable to all, therefore a one size fit all solution is not feasible.

"If we do not succeed in agreeing to specific numbers in percentage for tariff cuts and domestic subsidies, we run the risk of failure of these negotiations, which is not an option. Let us catalyse this process and move on to address the issues in a manner that meets the challenges of the Millennium Development Goals. Success in the Doha Round can assure success in achieving these goals," the minister said.

Mr Khan said: “No matter how much we run after free trade agreements, it is the multilateral route which is in our long-term interest, and that five years of posturing and negotiations is enough and now we should be able to get there.”

The lunch was attended by US Trade Representative Ms Susan Schwab, EU Commissioner of Trade Peter Mandelson, Australian Minister of Trade and Deputy Prime Minister Mark Vaile, Brazilian Foreign Affairs Minister Celso Amorim, Indonesia Trade Minister Ms Mari E. Pangestu, Indian Commerce and Industry Minister Kamal Nath, Chinese Vice-Minister of Commerce Yi Xiaozhun, Japanese Economy, Trade and Industry Minister Toshihiro Nikai, Canadian International Trade Minister David Emerson, Zambian Commerce Minister Dipak Patel, Singaporean Trade and Industry Minister Lim Hug Kiam and Hong Kong-China Commerce, Industry and Technology Secretary Joseph W.P. Wong.