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Home >> Opinion
UPDATED: 08:31, August 03, 2004
A hard-won breakthrough: Interview
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Through a 2-week close consultation and a 40-hour day-and-night negotiation starting from Jul 30, members of the WTO have eventually reached a framework agreement in line with the "Doha round"talks on the major topics of global multilateral trade talks at 00:30 Aug.1 (local time). Immediately afterwards, Sun Zhenyu, Chinese ambassador to the WTO accepted the interview of the reporter from the Xinhua News Agency, elucidating in a detailed way the contents of the framework agreement and its relations with the developing members, and especially the relations with China.

According to Sun Zhenyu, the framework of the"Doha round"talks is based on the spirit as declared at the WTO Ministerial Conference 2001 at Doha and it is an agreement in principle reached through arduous talks among all members. It has dealt with the problems of agriculture, non-agricultural product market access, problem of development, service trade and many other items for the convenience of trade talks in regard with the "Doha round"talks but hasn't dealt much about the numerals in detail and all members can have a clear and general view in trade talks later on in so far as its contents and orientation are concerned.

In the framework agreement as regards the agriculture, Sun Zhenyu said, it has dealt with the three contents of domestic support, export competition and market access. In connection with the domestic support it has made a description about the general level of domestic support that distorted the trade, the principle and the relevant criteria for the deduction of domestic support and the discipline. With regard to export competition, the agreement has made it clear that a definite timetable has to be decided for the eventual abrogation of export subsidies and its relevant problems and meanwhile, a relevant discipline has been worked out on the export credit, foodstuff aid, and on the relevant problem of the SOEs and export subsidies. As to the market access, the basic elements in formula talks have been defined with regulations made clear as how to take up tariff-obligations for the reduction of tariffs of those "sensitive products" between the developed and developing countries, and also recognized that the "special products" of the developing members are going to enjoy more favorable treatment. Besides, the agriculture framework also undertakes that a relevantly flexible arrangement can be made for the treatment of the most underdeveloped members and the new members. Sun Zhenyu said, as to the market-access framework for non-agricultural products, basic regulations have been cited from that worked out at the Cancun conference in last September, adopting as regulated the way of non-linear reduction, sectional reduction and the principle for specially different treatment and non-tariff measures for members of the developing countries. However, due to a big difference of the members, a note of explanation about the case has been added into it to be decided in the further talks later on.

Sun Zhenyu said, the framework has decided to launch into operation the convenience for trade talks and reached a common view as to the patterns for the talk. However, three "topics concerning Singapore" were put outside the "Doha round" working program due to the resistance of the developing members.

During the talks about the framework agreement, Sun Zhenyu said, the developing countries have gains and losses but the result is better than as expected. The success in the talk lies in the recognition by the developed countries that their subsidies to the agricultural products export will have a definite time for eventual cancellation and at the same time have a 20 percent initial reduction of all those domestic support distorting the trade. This is a big victory won by the developing countries. However, in the meantime the USA will perhaps get some measures approved for the adjustment of its domestic support, thus avoiding the obligation for its actual reduction. Of course, the adjustment of some measures will help reduce the distorted support to the trade and so it has its positive side. In regard to the specially different treatment for the members of developing countries the agreement has dealt with the favorable treatment for the "sensitive products" and "special products" and the differential treatment for microscale allowances, export subsidies and state-owned trade enterprises and so on.

All in all, the framework agreement though cannot be considered as satisfactory for members of developing countries, is on the whole not bad. This is the outcome won by exercising unanimous unity and joint efforts of all members of the developing countries.

Finally, Sun Zhenyu expressed that the Chinese delegation composing of the Ministry of Agriculture, Ministry of Finance, Development and Reform Commission of the State Council, General Customs Administration and resident delegation to the WTO headed by Yi Xiaozhun, assistant to minister of the Ministry of Agriculture attended the talks. The Chinese Delegation coordinated and cooperated well with delegations of other developing countries, supported each other to actively defend the common interests of the developing countries, maintain the economic benefits of China while had beneficial exchanges of views with the members of developed countries. The delegation has played an active and constructive role in the talks.

As a member of the developing countries China shared many things in common with, and defended the interests for, the members of the developing countries. This also means to defend its own interests. However, at the same time China has certain special interests to be taken care of. In the talks, by way of sound reasoning China has got embodied in the framework agreement the discipline of the state-owned trade enterprises, preferential treatment for microscale allowances, and for "special products" and favorable treatment for new members etc. This has laid a good foundation for maintaining China's economic benefits during the next-stage talks. And in the meanwhile, China had a close cooperation with other member countries, expressed by somewhat way the flexibility in the talks as to the market access for non-agricultural products and the pattern for the convenience in trade talks, and reached a common view in regard to the development, thereby having made contribution to maintaining the unity among the members of the developing countries.

By People's Daily Online

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