HONG KONG, Dec 5: Asian countries have become increasingly tentative ahead of upcoming WTO talks here, hoping at best to keep the negotiations on track in the knowledge that an overall trade accord is virtually impossible. The key objective, they agree, is to avoid a repeat of 2003, when the Cancun, Mexico, meeting of World Trade Organization (WTO) ministers collapsed in an acrimonious standoff between developed and developing countries over free trade in agriculture in return for the same in industrial goods and services.

Some progress has been made since then on getting the cuts in tariffs and subsidies needed for an overall deal but not enough has been done for a deal.

As a result, top officials at preparatory talks between the United States, the European Union, Japan, India and Brazil have downgraded the Hong Kong meeting to a holding exercise — to keep the Doha Round going in the hope something can be salvaged later.

Asian countries, ranging from wealthy Japan to developing Indonesia and emerging giant China, and all with slightly different priorities, seem ready to go along with that minimum agenda, if only to avoid opening up old divisions.

“If we go the way Cancun did, which was all or nothing ... I doubt very much that we can achieve consensus,” Malaysian Trade Minister Rafidah Aziz said.

The parties now need “to be more practical and pragmatic ... and choose the areas (in which) we almost have a consensus. For example, trade facilitation. We understand that there is very little debate on that now,” she said.

Naming agriculture, and the EU’s refusal to make more concessions on it, as the main sticking point, Ms Rafidah said the issue could be left for further talks next year when an overall accord must be reached to save the Doha Round.

A similar line is taken by India, which has played a leading role in getting the developing world’s concerns voiced at the WTO and insists they must not be sacrificed simply for the sake of a deadline.

“Deadlines are important — but more important than anything else is to have a deadline to achieve development. An equitable and fair outcome to the Doha Round, at Hong Kong and beyond, should deliver effectively on the development dimension,” Indian Minister of Commerce and Industry Kamal Nath told AFP.

“Developing countries have put forth several constructive proposals on development and implementation issues which are of considerable significance to them. Substantive progress on these issues must take place by Hong Kong.”

Mr Nath said the imbalances in the international trading system remain entrenched and no “real reductions in agricultural subsidies by developed countries have resulted (from the talks).”

At the same time, “real market access in products of export interest to developing countries remains impeded by tariff peaks, escalations, specific duties and non-tariff barriers,” he said, echoing a widely held view that the developed world’s calls for free trade are at best self-serving if not worse.

Mr Nath’s comments reflect a sense of resentment in some quarters that could bubble to the surface unless the major parties act with a measure of self-restraint and agree to let differences pass.

Much therefore depends on how Hong Kong manages the meeting, conscious of its world image and China’s presence at a key international gathering on its soil.

Hong Kong industry chief John Tsang, the chairman with the task of keeping all 148 WTO members in line if not in agreement, says the meeting should at least salvage a deal for poor countries if a wider trade accord is unlikely.

“I want to push forward a development package comprising issues that are close to fruition — put it out before waiting for the end of the round to create an environment of comfort for everyone,” Tsang told AFP recently.

“This is after all a development round and if we aren’t able to do something significant in development it really becomes meaningless,” he said.

China, fresh from a series of bruising brawls over its textile exports with the EU and United States, has taken a similarly cautious line, emphasising its credentials as a developing country.

“We hope the WTO (meeting) ... will be of a constructive nature and bring benefits

to members of the WTO, particularly the developing members,” Chinese Foreign Minister Li Zhaoxing told last month’s Apec gathering in South Korea.

“China is a member of the developing world and also a member of the WTO, so we will work together with other parties to seek more progress,” he added.—AFP