‘No progress made at Doha trade negotiations last week’

Efforts to galvanise Doha trade negotiations last week failed to make progress because of leading industrialised countries’ demand for market access for industrial goods and services in developing nations, including China, India, Brazil and South Africa, according to sources.

Senior trade officials and envoys from the United States, the European Union, China, India, Brazil, Japan, Canada, Australia, Argentina, South Africa and Mauritius had met twice last week to ostensibly narrow gaps on several outstanding issues.

In addition, trade officials also held bilateral meetings to explore opportunities in the three market access areas of agriculture, industrial goods and services.

“There was no substantial progress at the G—11 meeting,” said a developing country trade envoy, preferring anonymity.

“The basic problem is excessive unilateral demands made by some members,” the envoy said, adding, “It has become a one way street and it’s difficult to make progress.”

The Doha talks are facing a roadblock on the commitments sought by industrial nations in goods and services market access, and in increasing agricultural market access and other areas of interest for developing countries.

While the two trade industrialised country trade majors— the US and the EU— made ambitious demands for market access in China, India, and Brazil for industrial products and services, they were unwilling to reciprocate on Brazil’s demands for greater agriculture market access.

Brazil floated a product basket approach for farm products and insisted on more market access for its beef and poultry products as a payment for pursuing a similar approach in industrial goods, sources said.

The EU, however, has rejected the Brazilian demand, saying that members cannot raise new demands in agriculture, which is already stabilised.

The developing countries asked the EU as to why it raised new demands in industrial goods and services despite being a party to the 2008 compromises.

Major industrialised countries also continue to block demands for payment on the grounds that developing countries already enjoy unhindered access in their markets, said sources familiar with the meeting.

“While there were constructive exchanges, there was no movement on substantive issues,” said an industrialised country trade official.

He argued that unless both the sides showed flexibility in accommodating their mutual concerns there will be no progress.