Fed: World trade talks on knife-edge: Vaile

AAP General News (Australia)
12-06-2003
Fed: World trade talks on knife-edge: Vaile

By Shane Wright

CANBERRA, Dec 6 AAP - World trade talks were on a knife-edge and could be set back
years if there was not a breakthrough soon, Trade Minister Mark Vaile said today.

Mr Vaile said the world may have to review the timing of the current round of talks
if there is no breakthrough soon.

Negotiations between world trade ministers broke down in September during talks in
the Mexican resort city of Cancun.

Developing and developed countries split over the speed of reform of agricultural protection,
in an area known as the Singapore issues.

The World Trade Organisation will meet on December 15 in a bid to get talks back on
track to meet the previously nominated deadline for the round of January 1, 2005.

Mr Vaile said failure at the December 15 meeting would be a critical blow to world trade talks.

"It's on a knife's edge," he told reporters.

"If the December 15 meeting is not productive enough to give everybody the confidence
to move ahead and get back to the negotiating table, then we're going to start the new
year next year thinking of alternative strategies."

The US heads to an election in November next year, while European Union Trade Commissioner
Pascal Lamy will stand down in October.

Mr Vaile said a core of world trade ministers had developed a good rapport over the
past three years which could be used to get talks moving forward.

If negotiations bog down, the links between negotiators would be lost.

The Cancun meeting saw the emergence of the so-called G-21, a group of more than 20
developing countries which demanded major cuts in the agricultural protection used by
developed countries.

It splintered the pro-agricultural reform Cairns group, which is headed by Australia.

Mr Vaile said it was important for the Cairns group to keep its focus, and even encourage
membership by some members of the G-21.

"We've got to make sure we maintain our position in the middle of the road as the grouping
that is the custodian of the ag reform lobby," he said.

"(We must make sure it) is professional and disciplined across developed and developing
countries and has a sustainable position in terms of our position in the round."

AAP sw/sb/sco/de

KEYWORD: WTO

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