US asks emerging powerhouses to open markets to save trade talks

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US asks emerging powerhouses to open markets to save trade talks

Washington, July 8 (IANS) The United States has accused advanced developing countries like India, China and Brazil of hiding behind the poorest nations at the world trade talks and asked them to instead open their markets to make the Doha round a success.

The talks for a new trade deal are 'not a North/South debate,' said US Trade Representative Susan Schwab at a news conference at the National Press Club, Washington Friday to explain what in her view led to breakdown of negotiations at Geneva last week.

'There are developing countries that were over in Geneva that have been as vocal if not more vocal than the United States when it comes to the question of market opening. So we're in very very good company,' Schwab claimed.

'But there are some developing countries, advanced developing countries, arguably emerging or existing powerhouses, that would like to hide behind the least developed and poorest among us that clearly should be given a pass in these negotiations.

'The Brazil's, the China's, the India's of this world can and should be expected to participate in this negotiation, including opening their markets to benefit other developing countries because the sad fact is that 70 percent of of the duties paid by developing countries, are paid to other developing countries.

'So if you really want to meet the promise of the Doha round, we need to be generating not just more North/South trade, as we clearly want to do; not just more North/North trade which we want to do; but also more South/South trade,' Schwab said.

At Geneva, 'we also learned, much to my chagrin as a long term development economist, that there are some advanced developing countries like India that are questioning the benefits of open market development,' she said.

The US had signalled a willingness to modify its domestic support proposal in agriculture but also made it clear that this willingness is attached to a prerequisite for more market access, Schwab said suggesting WTO members have a clear choice: to reduce barriers, to spur growth and to spur economic development.

Meanwhile, the Washington Post editorially asked the Bush administration to make one last effort to resuscitate the talks by making a more generous offer to cut US farm subsidies lest it be blamed for the failure of trade talks.

'The Bush administration faces a dilemma in the wake of last weekend's breakdown of world trade talks. It can allow the hope of freer trade to die, comforting itself that this failure is due mainly to the intransigence of the European farm lobby and to grandstanding by developing countries, foremost among them India,' it said.

'Tempting though it is to denounce the hypocrisy of the Europeans and Indians, the Bush team should overlook their infuriating behaviour and offer further concessions,' the newspaper suggested.

Even though the US offer to cut farm subsidies was more substantive than the reciprocal European Union offer, the US position is not above criticism, it said pointing out that Bush administration had repeatedly proclaimed its dislike for the country's scandalously wasteful farm programme and its belief that the United States has benefited from trade.

'They are correct on both counts, so they shouldn't hesitate to propose more serious cuts in agricultural subsidies if that's what it takes to get trade liberalization,' the Washington Post concluded.

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US asks emerging powerhouses to open markets to save trade talks