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| World trade talks end in collapse | World trade talks end in collapse |
| (10 minutes later) | |
| Marathon talks in Geneva aimed at liberalising global trade have collapsed, the head of the World Trade Organisation has said. | Marathon talks in Geneva aimed at liberalising global trade have collapsed, the head of the World Trade Organisation has said. |
| Pascal Lamy confirmed the failure, which officials have blamed on China, India and the US failing to agree on import rules. | Pascal Lamy confirmed the failure, which officials have blamed on China, India and the US failing to agree on import rules. |
| EU Trade Commissioner Peter Mandelson said the result was "heartbreaking". | EU Trade Commissioner Peter Mandelson said the result was "heartbreaking". |
| The talks were launched in 2001 in Doha and were seen as providing a cornerstone for future global trade. | The talks were launched in 2001 in Doha and were seen as providing a cornerstone for future global trade. |
| The main stumbling block was farm import rules, which allow countries to protect poor farmers by imposing a tariff on certain goods in the event of a drop in prices or a surge in imports. | The main stumbling block was farm import rules, which allow countries to protect poor farmers by imposing a tariff on certain goods in the event of a drop in prices or a surge in imports. |
| India, China and the US could not agree on the tariff threshold for such an event. | India, China and the US could not agree on the tariff threshold for such an event. |
| Washington said that the "safeguard clause" protecting developing nations from unrestricted imports had been set too low. | Washington said that the "safeguard clause" protecting developing nations from unrestricted imports had been set too low. |
| Possible solution? | Possible solution? |
| The negotiations floundered as trade officials gathered for a ninth day. | The negotiations floundered as trade officials gathered for a ninth day. |
| "There's no use beating around the bush, this meeting has collapsed," Mr Lamy said. | "There's no use beating around the bush, this meeting has collapsed," Mr Lamy said. |
| "Members have simply not been able to bridge their differences." | "Members have simply not been able to bridge their differences." |
| He added that time was needed to determine "if and how" WTO members could end the stalemate. | He added that time was needed to determine "if and how" WTO members could end the stalemate. |
| This is a better outcome for the world's poorest people than the bad deal on the table. World Development Movement, href="http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7520000/newsid_7522000?redirect=7522083.stm&news=1&null=1" onClick="javascript:newsi.utils.av.launch({el:this});return false;">In quotes: Trade talks collapse class="" href="/1/hi/business/7517028.stm">Q&A: Crunch trade talksYour views: What now? | |
| The Doha development round of trade talks initially started in 2001 with the aim of remedying inequality so that the developing world could benefit more from freer trade. | |
| However, the talks have repeatedly collapsed as developed countries failed to agree with developing nations on terms of access to each others' markets. | However, the talks have repeatedly collapsed as developed countries failed to agree with developing nations on terms of access to each others' markets. |
| The US and the European Union want greater access to provide services to fast-growing emerging countries, including China and India. | The US and the European Union want greater access to provide services to fast-growing emerging countries, including China and India. |
| Meanwhile, developing countries want greater access for their agricultural products in Europe and the US. | Meanwhile, developing countries want greater access for their agricultural products in Europe and the US. |
| Recent complications | Recent complications |
| Analysts have said that the collapse of the Doha talks could symbolise an end to multilateral trade agreements. | Analysts have said that the collapse of the Doha talks could symbolise an end to multilateral trade agreements. |
| America's top trade negotiator Susan Schwab on the talks | America's top trade negotiator Susan Schwab on the talks |
| Instead, nations may pursue dual agreements with partner nations, preferring to focus on their own requirements rather than a more common negotiating goal. | Instead, nations may pursue dual agreements with partner nations, preferring to focus on their own requirements rather than a more common negotiating goal. |
| The talks in Geneva were complicated by recent increases in the price of food and fuel. | The talks in Geneva were complicated by recent increases in the price of food and fuel. |
| Higher prices have prompted protests in both developed and developing nations, making it harder for negotiators to reach a compromise on opening up their markets to greater competition, analysts said. | Higher prices have prompted protests in both developed and developing nations, making it harder for negotiators to reach a compromise on opening up their markets to greater competition, analysts said. |
| Mr Mandelson, the EU trade commissioner, blamed the collapse on a "collective failure" but warned that the "consequences would not be equal", predicting that it would be countries that most needed help that would be hit hardest. | Mr Mandelson, the EU trade commissioner, blamed the collapse on a "collective failure" but warned that the "consequences would not be equal", predicting that it would be countries that most needed help that would be hit hardest. |
| "They [the consequences] will fall disproportionately on those who are most vulnerable in the global economy, those who needed the chances, the opportunities most from a successful trade round." he said. | "They [the consequences] will fall disproportionately on those who are most vulnerable in the global economy, those who needed the chances, the opportunities most from a successful trade round." he said. |
| 'Protecting livelihoods' | |
| Trade officials had struck an optimistic tone on Friday, but this evaporated over the weekend amid acrimonious exchanges with the US accusing India and China of blocking progress. | Trade officials had struck an optimistic tone on Friday, but this evaporated over the weekend amid acrimonious exchanges with the US accusing India and China of blocking progress. |
| The US says they are being overly protective towards their own farmers and are failing to do enough to open their markets. | The US says they are being overly protective towards their own farmers and are failing to do enough to open their markets. |
| India's Commerce Minister Kamal Nath rejected the charge, saying: "The US is looking at enhancing its commercial interests whereas I am looking at protecting the livelihood of farmers." | India's Commerce Minister Kamal Nath rejected the charge, saying: "The US is looking at enhancing its commercial interests whereas I am looking at protecting the livelihood of farmers." |
| Chinese Commerce Minister Chen Deming echoed Mr Nath, saying the US was "asking a price as high as heaven". | Chinese Commerce Minister Chen Deming echoed Mr Nath, saying the US was "asking a price as high as heaven". |
What is your reaction to the collapse of the trade talks? Where do the negotiators go from here? Send us your comments using the form below. | What is your reaction to the collapse of the trade talks? Where do the negotiators go from here? Send us your comments using the form below. |