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Bid to salvage world trade talks | |
(10 minutes later) | |
Negotiations aimed at rescuing a deal to liberalise world trade are going into a ninth day after delegates failed to resolve deep differences. | |
A spokesman for the World Trade Organization said the talks in Geneva had reached a "very tense" stage. | |
The US accused China and India of insisting on too much protection for their farmers and industries. | |
Sources close to the negotiations say that if progress is not made soon the talks could collapse. | |
Backing out | Backing out |
Discussions which continued late into Monday night failed to resolve a dispute that has put a deal in serious doubt. | |
The BBC's Theo Leggett in Geneva says the future of the "Doha round" - launched in 2001 - depends on the extent to which developing countries can protect vulnerable industries from competition if imports rise to harmful levels. | |
Their actions have thrown the entire Doha round into the gravest jeopardy of its nearly seven-year life David Shark, US trade official Q&A: Crunch trade talks | Their actions have thrown the entire Doha round into the gravest jeopardy of its nearly seven-year life David Shark, US trade official Q&A: Crunch trade talks |
The dispute has pitted India and China against the United States. | The dispute has pitted India and China against the United States. |
On Monday US trade official David Shark criticised India for rejecting the package and China for backing out of the terms it agreed to last week. | On Monday US trade official David Shark criticised India for rejecting the package and China for backing out of the terms it agreed to last week. |
He accused them of being overly-protective towards their own farmers and failing to do enough to open their markets. | He accused them of being overly-protective towards their own farmers and failing to do enough to open their markets. |
"Their actions have thrown the entire Doha round into the gravest jeopardy of its nearly seven-year life," Mr Shark said. | "Their actions have thrown the entire Doha round into the gravest jeopardy of its nearly seven-year life," Mr Shark said. |
China hit back by saying that rich nations were pushing developing countries into special deals on certain sectors while reserving the right to protect sensitive agricultural products. | China hit back by saying that rich nations were pushing developing countries into special deals on certain sectors while reserving the right to protect sensitive agricultural products. |
India's envoy, Ujal Singh Bhatia, told AFP news agency that the US accusation was unfair and that the US only made the claims because it was "not achieving its aims". | |
India insists Washington is promoting the interests of rich countries at the expense of efforts to combat poverty. | India insists Washington is promoting the interests of rich countries at the expense of efforts to combat poverty. |
Bananas | Bananas |
Meanwhile nine European Union countries led by France are demanding greater access to developing countries. | |
France said the deal being worked out in Geneva was unacceptable, as it failed to show any real progress to protect European industrial interests in the face of emerging economies. | |
China and India fear rich countries will have unfair access to their markets | China and India fear rich countries will have unfair access to their markets |
Talks appeared on the brink of collapse last week but WTO chief Pascal Lamy was able to broker a proposed settlement between seven key trading nations late on Friday. | |
The deal calls for cutting the limit on European farm subsidies by 80% and US payments by 70% to about $14.5bn (£7.25bn). | |
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. |
It also involves the EU offering 80,000 temporary visas a year for working in the services sector. | It also involves the EU offering 80,000 temporary visas a year for working in the services sector. |
In another area of contention, former European colonies have threatened to block a trade deal to reduce the EU's controversial tariffs on Latin American banana imports. | In another area of contention, former European colonies have threatened to block a trade deal to reduce the EU's controversial tariffs on Latin American banana imports. |
The African, Caribbean and Pacific (ACP) trade grouping said the 35% cut agreed by EU and Latin American officials on Sunday was unacceptable. | The African, Caribbean and Pacific (ACP) trade grouping said the 35% cut agreed by EU and Latin American officials on Sunday was unacceptable. |
EU officials have been trying to review the special trade deals with about 80 ACP countries, which have been in place since the 1950s. | EU officials have been trying to review the special trade deals with about 80 ACP countries, which have been in place since the 1950s. |
These deals have allowed a range of products, including banana crops from ACP states, to enter the EU with no duty to pay, while Latin American exports were charged. | These deals have allowed a range of products, including banana crops from ACP states, to enter the EU with no duty to pay, while Latin American exports were charged. |