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Hope of deal in world trade talks Hope of deal in world trade talks
(about 1 hour later)
Progress has been made at global trade talks and a deal looks possible, negotiators have said.Progress has been made at global trade talks and a deal looks possible, negotiators have said.
Earlier, Pascal Lamy, the head of the World Trade Organization warned that the long-running Doha round would fail unless a compromise could be reached.Earlier, Pascal Lamy, the head of the World Trade Organization warned that the long-running Doha round would fail unless a compromise could be reached.
Delegates from the EU, US, Brazil and Australia said signs were encouraging although others were more cautious. Delegates have given the emerging deal a cautious welcome though Italy and France have voiced their concerns.
Talks have been extended until Wednesday. There are still sticking points that could hold up a deal. Talks will continue until Wednesday and there are still sticking points that could derail a deal.
"I think the situation looks strong. I think we can be very hopeful now," Peter Mandelson, EU trade commissioner, said."I think the situation looks strong. I think we can be very hopeful now," Peter Mandelson, EU trade commissioner, said.
"What is emerging is a deal that is not perfect, not beautiful, but is good for the global economy and good for development.""What is emerging is a deal that is not perfect, not beautiful, but is good for the global economy and good for development."
An 'emerging' dealAn 'emerging' deal
After four days of deadlock, the compromise emerged from a five-hour meeting of representatives from the US, European Union, Australia, Brazil, India, China and Japan. It was then reviewed by ministers from some 35 countries.After four days of deadlock, the compromise emerged from a five-hour meeting of representatives from the US, European Union, Australia, Brazil, India, China and Japan. It was then reviewed by ministers from some 35 countries.
The proposed settlement, brokered by WTO chief Pascal Lamy, calls for cutting limits of European farm subsidies by 80% and US payments by 70% to about $14.5bn. The proposed settlement, brokered by Mr Lamy, calls for cutting limits of European farm subsidies by 80% and US payments by 70% to about $14.5bn.
However, this would not mean the US would have to cut its actual spending on support to farmers, which totalled about $9bn last year.However, this would not mean the US would have to cut its actual spending on support to farmers, which totalled about $9bn last year.
The compromise proposal also involves cuts in tariffs on agricultural imports and on industrial goods.The compromise proposal also involves cuts in tariffs on agricultural imports and on industrial goods.
However, it would still provide developing countries with some loopholes to protect strategic industries such as automobiles.However, it would still provide developing countries with some loopholes to protect strategic industries such as automobiles.
CautionCaution
Developing countries like Brazil and India say the US and EU are failing to offer big enough cuts in subsidies and import tariffs, particularly in agriculture.Developing countries like Brazil and India say the US and EU are failing to offer big enough cuts in subsidies and import tariffs, particularly in agriculture.
However, Washington and Brussels both say they have ceded ground and want emerging economies to further open their markets to imports of manufactured goods and services.However, Washington and Brussels both say they have ceded ground and want emerging economies to further open their markets to imports of manufactured goods and services.
The (proposed) deal threatens disaster for millions as developing country markets are forced open in the interests of corporate profits John Hilary, executive director War on Want Q&A: Crunch trade talksThe (proposed) deal threatens disaster for millions as developing country markets are forced open in the interests of corporate profits John Hilary, executive director War on Want Q&A: Crunch trade talks
French Trade Secretary Anne-Marie Idrac said several European countries still wanted more access to markets in developing countries. Italian Prime Minister Silvio Berlusconi said he and French President Nicolas Sarkozy had "deep concern" about the plan. French Trade Secretary Anne-Marie Idrac said several European countries still wanted more access to markets in developing countries.
European Agriculture Commissioner Mariann Fischer Boel said: "A huge majority of member states supported the Commission...on the basis of the paper on the table, to continue negotiations." European Agriculture Commissioner Mariann Fischer Boel said: "A huge majority of member states supported the Commission... on the basis of the paper on the table, to continue negotiations."
US Trade Representative Susan Schwab said ministers had reached tentative agreement on the way forward but added:"I think the biggest concern that we have is that a handful of large emerging markets really threaten this round for the rest of us." US Trade Representative Susan Schwab said ministers had reached tentative agreement but added:"I think the biggest concern that we have is that a handful of large emerging markets really threaten this round for the rest of us."
Argentina rejected the proposal drawn up by the countries, saying it "was not acceptable in its current form". Argentina rejected the proposal, saying it "was not acceptable in its current form".
Indian Commerce Minister Kamal Nath, whose tough position has been blamed for the deadlock, said "there are certain areas of concern, certain areas of consensus".Indian Commerce Minister Kamal Nath, whose tough position has been blamed for the deadlock, said "there are certain areas of concern, certain areas of consensus".
"There's still a lot of work to be done because for instance we didn't deal with cotton, which is a central issue," said Brazilian Foreign Minister Celso Amorim.
Bleak outcome?Bleak outcome?
John Hilary, executive director of the anti-poverty charity War on Want, said that proposed settlement could lead to "a bleak outcome for the world's poor". John Hilary, executive director of the anti-poverty charity War on Want, said the proposed settlement could lead to "a bleak outcome for the world's poor".
This is the last throw of the dice Peter Mandelson, EU trade commissionerThis is the last throw of the dice Peter Mandelson, EU trade commissioner
He said the proposal allowed developed countries to get away with minimal cuts to their farm subsidies, while at the same time opening up developing country markets to both agricultural and industrial imports.He said the proposal allowed developed countries to get away with minimal cuts to their farm subsidies, while at the same time opening up developing country markets to both agricultural and industrial imports.
"Stitching together an agreement between seven states while shutting out all others exposes the lack of legitimacy at the heart of the world trade talks," he said."Stitching together an agreement between seven states while shutting out all others exposes the lack of legitimacy at the heart of the world trade talks," he said.
"The deal threatens disaster for millions as developing country markets are forced open in the interests of corporate profits.""The deal threatens disaster for millions as developing country markets are forced open in the interests of corporate profits."
Trade ministers from around the world began talks on Monday aimed at saving the Doha round, which began in 2001 and aims to liberalise world trade rules by reducing tariffs on imports and industry subsidies.Trade ministers from around the world began talks on Monday aimed at saving the Doha round, which began in 2001 and aims to liberalise world trade rules by reducing tariffs on imports and industry subsidies.
If negotiators fail to find common ground after this week's meeting, many think the Doha round would be doomed.If negotiators fail to find common ground after this week's meeting, many think the Doha round would be doomed.
It is also not clear that any pledges made by the Bush administration at these talks would be honoured by the new US president who will be elected in November - especially if the Democratic candidate, Barack Obama, wins.It is also not clear that any pledges made by the Bush administration at these talks would be honoured by the new US president who will be elected in November - especially if the Democratic candidate, Barack Obama, wins.