Pakistan yet to take stand on failure of trade talks
By Our Staff Reporter
ISLAMABAD, July 30: Pakistan has not take a position in the wake of the Doha trade talks’ suspension. No tangible reason has been given for the stalemate.
Many developing countries, who were member of the G-20 like India and Brazil have openly criticised the United States and the European Union for the failure of Doha trade talks and also unfolded their future course of action.
A senior official told Dawn that the trade talks might resume in November 2006 to break the impasse.
Although Pakistan is also a member of the G-20, but it has yet to established its position within this group by holding anyone responsible for the suspension of talks.
Independent analysts linked the collapse of trade talks in Geneva with the forthcoming elections in the United States and Brazil, who refused to budge on their stands for the early completion of the Doha development round.
The Doha talks were launched in 2001 to boost the global economy and to tackle poverty.
The farmers lobby in the US is very strong, and they are opposing the developing countries’ demand for steep cuts in agriculture subsidies. While industrialists in Brazil were also pressing their government not to commit any cut in tariffs on industrial goods.
A trade analyst said that they did not expect these two governments, who were also member of G-6 bloc, to go against the interests of these powerful lobbies, capable of upsetting the outcomes in the upcoming elections.
According to the official, if the talks were resumed in November and member countries finalised agreement by the end of March 2007, there would still be a 90-day period in the expiry of the US fast track authority – the power of a US president to veto any agreement without the Senate approval. The authority is set to expire by June 30, 2007. There is a possibility to extend the authority by several months or a year, the official said.
The main issue is agricultural subsidies. Neither the United States nor the EU appear ready to reduce farm subsides to a level desired by developing countries.
