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FACTBOX-Contentious issues in WTO's latest free trade push

27 Jul 2007 15:34:38 GMT
Source: Reuters

July 27 (Reuters) - The World Trade Organisation's (WTO) latest push to reduce barriers to global commerce has struggled to overcome resistance from many countries which fear exposing their markets to more competition.

Agriculture and industrial goods are the most contentious issues in the nearly six-year-old talks, known as the Doha round. But big differences remain in other corners of the negotiations, including services and intellectual property.

Following is a snapshot of the main issues in the WTO talks, which are due to resume in September with the aim of wrapping up the main elements of an accord by the end of 2007 after which the negotiations risk being put on hold for several years:

AGRICULTURE

Rich countries agreed at the Doha round's launch in 2001 to discuss phasing out farm subsidies and tariffs that skew prices and make it difficult for developing world producers to compete.

The European Union has offered to cut its average farm import tariffs by 46 percent. But proposals made last week by the WTO's farm talks chairman would require the EU to slash the tariffs by about 64 percent. Brussels is worried the cuts could cause big rises in imports of beef, pork and other farm goods.

The United States is under pressure to cut the politically sensitive subsidies it gives to its farmers, currently capped at about $48 billion a year, to between $13 billion and $16.4 billion. Washington has offered to lower the ceiling to $17 billion but wants more access to new markets in return.

The farm talks are due to resume on Sept. 3 in Geneva, with a focus on the degree to which countries can protect their most sensitive farm products from the full impact of tariff cuts.

INDUSTRIAL GOODS

A set of proposals on industrial goods, also published last week, was roundly criticised by developing countries for pressing them to open their manufacturing markets too much.

Brazil, Argentina, India, Jamaica and other countries have said the suggested import tariff cuts on manufactured goods are too onerous compared to what was being asked for in agriculture.

The United States and the EU are pushing for cuts in industrial tariffs that are actually applied to industrial goods and not just the ceiling. Washington has said the proposals are too modest and the EU has said it could seek deeper cuts.

The suggested formula would cut maximum tariffs for developed nations to 8 or 9 percent and for developing countries to between 19 percent and 23 percent. European businesses say the range is too high and the offer would allow developing countries to shield key sectors.

The world's poorest nations would be exempted from such cuts.

SERVICES, RULES, INTELLECTUAL PROPERTY, AID FOR TRADE

India, under pressure on agriculture and industrial goods, said this week it would seek trade-offs in the services sector. India wants limits on the movement of workers eased, a move which for example would help its technology professionals.

The WTO services negotiations also cover areas such as banking, insurance, telecommunications and tourism. The EU and the United States, where services are main economic drivers, say the sector must not be overlooked in the talks.

The WTO's rules negotiations cover issues such anti-dumping measures and fishing subsidies and a proposal for compromises is due to be made at the same time of the first revisions to the agriculture and industrial goods papers, probably in October.

Talks over intellectual property have yet to reach agreement on a registry of "geographical indications," often place names used to identify the origin and quality of products, such as "champagne" wine.

Other talks include efforts to help developing countries boost their export capacity through "aid for trade" funding and technical assistance and possible adjustments to the WTO's dispute settlement procedures.

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Last updated:Fri Jul 27 15:36:47 2007