segunda-feira, setembro 22, 2003

EU blames "medieval" WTO after trade talks collapse

The European Commission lamented Monday the breakdown of world trade talks in Mexico, saying it was ready for compromise but pointing the finger of blame firmly at the "medieval" World Trade Organization (WTO).

The EU's executive arm, reacting after the talks' collapse on Sunday, said the four-day meeting in Cancun was a "serious disappointment for all and a severe blow for the WTO."

"Even though the WTO should not be criticized for the lack of its member states' willingness to accept compromise, we should... consider ways to make the WTO function more effectively," said commission head Romano Prodi.

"What is evident is that the organization couldn't support the weight of the task it was given," he added.

WTO delegates headed home from the Mexican resort of Cancun on Monday after talks aimed at galvanizing momentum toward a new multilateral trade accord ended in failure ravaged by a bitter rift between rich and poor countries.

The WTO itself played down what it termed a "setback," the United States blamed some delegations it did not name for refusing to compromise, while developing countries celebrated their new-found strength.

"It would be useless to try and blame anyone for the outcome for we are all equally responsible," said Prodi, adding: "The EU has made its best to contribute to a compromise, notably to meet the demands of the developing countries."

EU trade commissioner Pascal Lamy meanwhile reiterated an accusation first made at the 1999 Seattle meeting of the WTO which became infamous for violent demonstrations by anti-globalization protestors.

"Despite the commitment of many able people, the WTO remains a medieval organisation," he said, according to speaking notes released in Brussels.

"I said this in Seattle, got a lot of flak and I have to repeat it here. The procedures and rules of this organisation have not supported the weight of the task," he said, adding there is no way to structure and steer discussions amongst 146 members in a manner conducive to consensus.

"The decision-making needs to be revamped. The EU remains committed to a strong rules-based multilateral trading system and will continue to work in this direction within the WTO," he said.

In Cancun, delegates said the conference foundered on its final day over what are known as the Singapore issues -- cross-border investment, competition policies, trade facilitation and government procurement.

Developing countries oppose the issues, fearing in particular that a new international investment regime would benefit multilateral corporations at the expense of their own industries.

The European Union and Japan had urged a prompt start to talks on the Singapore issues.

The conference was also riven by deep divisions on agriculture, with developing countries clamoring for an end to trade-distorting subsidies offered to farmers in rich countries.

The EU agreed that export subsidies on certain products deemed critical by developing countries could be removed but balked at the elimination of all such assistance by a specific date.

The United States went along with demands for an end to export subsidies but sought concessions in return.

(Text - Copyright © 2003 AFP.)