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Home >> Business
UPDATED: 13:51, December 17, 2005
US threatens to look elsewhere if Doha Round trade talks fail
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The United States Friday said it will find other ways to expand trade with some countries if the ongoing Doha Round trade negotiations fail to reach a consensus by the end of 2006.

In a statement issued here on the status of progress at the ongoing Sixth Ministerial Conference of the 150-member World Trade Organization (WTO), Senator Chuck Grassley, chairman of the US Senate Finance Committee, said, "I'm very concerned about the deadlock in Hong Kong."

He said that WTO negotiators face a de facto deadline due to the expiration of Trade Promotion Authority (TPA) in 2007 in the United States.

"If Doha Round negotiations aren't finalized by the end of 2006, the TPA window for US participation in the talks will close," he added.

Under the US system, the President negotiates trade agreements but the Congress must pass legislation implementing those trade agreements, so approval by the Congress is necessary for the United States to implement trade agreements such as a Doha Round agreement. The Congress also is responsible for legislation granting TPA to the President.

"If that's the case, the United States will move forward with its ambitious agenda for trade expansion. But we'll do so only with those countries that share our ambition," Grassley said.

The Doha Development Agenda (DDA) also called Doha Round, launched by the WTO in the Qatari capital of Doha in November 2001, bogged down into a deadlock mainly because of differences on reduction of subsidies for agriculture.

The current ministerial conference, which opened Tuesday and will go through Sunday, has made little progress. "We're halfway through the Hong Kong Ministerial, and it's clear that not much progress is being made," the US senator said.

Grassley slashed at the European Union, saying it "continues to block movement. While claiming to be a friend of the poorer countries, the EU is refusing to provide better market access for agricultural products, including those of developing countries."

He also blamed developing countries, saying "another problem is the unrealistic positions of some developing countries. I understand the views of West African cotton-growing countries.... They might not get all that they want."

The United States will "provide greater access to the US market for those countries that share our ambitious trade agenda," he said. "But those countries that aren't interested in ambition, those that are blocking the Hong Kong talks, can expect to be left on the sidelines as the United States moves forward with trade expansion."

Representatives from developing countries blamed the rich countries for avoiding a date for cutting export subsidies by taking the excuse of domestic pressure.

Kamal Nath, Indian Minister of Trade and coordinator for the African, Caribbean and Pacific (ACP) Group of States, said at a press briefing Friday, "The EU and the United States are demanding being paid for what they should do."

Source: Xinhua


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