China will play an active role in the new round of World Trade Organization (WTO) negotiations, which resumed on Monday with a focus on agriculture.
The discussions will build on the work done as part of the Doha Development Agenda, experts say.
China has been looking forward to resuming the talks and expects that WTO members will use the opportunity to restore confidence and increase trust, according to an unnamed official from the Ministry of Commerce.
The week-long meeting on agriculture in Geneva is the first formal gathering to discuss this issue since the Doha Development Agenda collapsed in Cancun, Mexico, in September.
The official said China’s positions on agricultural issues are, in many respects, close to those of the Cairns Group of agricultural exporting countries. The group comprises 17 nations, including Australia, New Zealand, Malaysia and Thailand.
China believes the US proposal that asks for agreement on a date to eliminate agricultural export subsidies, in a bid to push the stalled global trade talks, is constructive.
US Trade Representative Robert Zoellick made the proposal in his January 11 letter to his 146 WTO ministerial colleagues. He stated that the early conclusion of a package of win-win agreements from Doha would serve the interests of both developed and developing members.
However, Long Guoqiang, a researcher from the State Council’s Development and Research Center, anticipates that members will not put high expectations on the new round of talks ending by the set deadline.
“But a symbolic agreement on the framework of negotiation may be reached, which will offer fresh impetus to the stalled talks,” Long said.
The Doha round is scheduled for completion by the start of January.
The Cancun meeting failed as developing and developed countries split over the agricultural issue. Farming is a major source of employment and income for developing nations, but is economically and politically important in the United States, the European Union (EU) and other countries that dole out millions of dollars in subsidies to support prices and production.
A group of developing nations led by Brazil has repeatedly demanded an end to the subsidies that rich nations pay to their farmers. The United States spent about US$18.7 billion on farm subsidies in 2003, according to the US Department of Agriculture, while Europe spends roughly US$50 billion annually on rural development and its common agricultural policy.
But signs of flexibility and willingness to get the Doha talks back on track have started to appear, Long said.
Zoellick has made an offer to end some supports, but in return wants Brazil and its allies to eliminate barriers such as tariffs and quotas that limit exports to those nations.
The EU is prepared to discuss the elimination of agricultural export subsidies on all products, Franz Fischler, the EU agriculture minister, said on Monday.
The Cairns and G20 groups, representing developing countries, agreed last week to work together to achieve common goals in international agriculture trade.
They have resolved to eliminate export subsidies and significantly reduce trade-distorting domestic support. These will be milestone moves if they come to fruition.
Long, however, noted that differences are still so great that the January 2005 deadline is looking increasingly out of reach.
“But at least the current move will keep 2004 from becoming a wasted year for the WTO,” Long said.
Many countries have shifted away from the multilateral trading system to bilateral trade agreements or regional bloc agreements.
In the western hemisphere, the North American Free Trade Agreement, or NAFTA, will expand. The United States is also talking with many partners in an attempt to create bilateral free trade pacts.
In the eastern hemisphere, new bilateral plans for FTAs are appearing in many areas.
The Ministry of Commerce official added that new members of the WTO, like China, enjoy special status during the Doha round and should be granted special and differential treatment.
(China Daily March 25, 2004)
