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| Friday, 18 June 2004 |
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Poor nations launch talks to lower trade barriers SAO PAULO, Brazil, Thursday (Reuters) Poor nations on Wednesday launched new talks to lower their trade barriers in a move to fight poverty and win access to rich countries' markets. Argentine and Brazilian ministers launched negotiations to expand the Global System of Trade Preferences - an agreement on tariff reduction and trade liberalization among 44 developing countries - to at least 40 more nations. Many developing nations see trade with poor neighbors as second best to that with rich countries. But most see no alternative to so-called South-South trade while tariff barriers and subsidies block their farm exports from reaching Europe and the United States. Countries like the United States and France want more access to poor nations' economies before they open up their lucrative farm sectors to developing countries' exports. Argentine Economy Minister Roberto Lavagna told delegates at a meeting of the U.N. Conference on Trade and Development in Brazil that the new round of negotiations could lift millions out of poverty and push along a struggling world trade deal. "Advances in the Global System of Trade Preferences may go in parallel with the multilateral talks," Lavagna said. "This system contributes to the progressive liberalization of global trade." World trade talks meant to open farm markets in Europe and the United States could lose momentum or collapse if they do not reach basic deals in July. U.S. officials voiced concern the newly launched negotiations could be a threat to the World Trade Organization's troubled Doha round of free trade talks. Unlike WTO members, countries in the Global System of Trade Preferences do not have to extend mutual trade concessions to industrialized nations. "If this becomes a substitute for that it's not a good thing," said a U.S. development official who asked not to be named. "It's important it not be done on a discriminatory basis that excludes other nations." But Rubens Ricupero, secretary-general of UNCTAD, which oversees the Global System of Trade Preferences, said, "Far from being a substitute for South-North trade, it is a complement and strengthens it." Poor nations say they cannot eradicate hunger, which kills 25,000 people a day, just by selling tropical fruits and raw materials to rich nations. During the week-long UNCTAD meeting, the United Nations has encouraged them to focus on value-added goods and regional trade. Ricupero has pushed poor nations to overhaul their infrastructure, legal and regulatory systems so they can attract trade and investment. But that is no substitute for trade with rich nations. "We need the international market because it is big," said Ugandan President Yoweri Museveni. On Sunday, the United States, the European Union and the G20 group of developing nations agreed to move forward on agricultural issues - a breakthrough after WTO talks were stalled for nine months as rich nations baulked at G20 demands for access to global farm markets. "The deadlock is over," British trade minister Mike O'Brien told reporters on Wednesday. "There's a lot of goodwill, there needs to be some element of (G20) compromise." |
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