Concern grows at WTO over deal for poor

Concern was growing at the WTO talks yesterday that a deal to help poorer states could prove difficult to secure.

The US announced a doubling of its aid-for-trade budget to €2.25 billion a year by 2010 as part of a proposed development package under negotiation at the talks in Hong Kong.

The move followed similar recent announcements by the European Union and Japan.

But there were signs that other areas of the package were in difficulty as the US struggled to come up with measures that would further open its market to goods from the world's least developed countries, in the face of political opposition in Washington.

Having abandoned plans to reach an interim deal in the Doha global trade talks, due to end next year, ministers in Hong Kong regard a development package aimed chiefly at the poorest countries as one of the few potential achievements. But Washington and Tokyo both face domestic hurdles in extending duty-free and quota-free access to all products from poorer nations.

Meanwhile, the Irish Government is now satisfied with the approach being taken to the talks by EU Commissioner Peter Mandelson.

Michael Aherne, Minister of State at the Department of Enterprise, Trade and Employment said he was satisfied that Mr Mandelson's approach to the talks was consistent with EU policy.

Last month Mr Mandelson appeared to hold out the prospect of greater concessions on agricultural reform in the run up to the talks.

This prompted demonstrations and calls for his resignation from farmers' groups in Ireland, and he was described as reaching the "limit of his mandate" by the Irish Government.

"We're happy with the approach being taken by the commission in these negotiations," Mr Aherne said.

Although the EU Commission negotiates on behalf of all member states, some member states have sent delegations to Hong Kong to monitor the outcome of the negotiations and to consult with commission delegates.

A substantial official delegation of over 40 people is attending from Ireland, including the Minister for Agriculture Mary Coughlan, Minister of State for Trade Michael Aherne and Minister for State for Development Conor Lenihan.

Mr Aherne said it was vital that progress be made at Hong Kong "If we don't get agreement in Hong Kong, it may take another 10 years to sort it out. The real losers will then be the developing countries."

He described the prospects of a successful outcome as better than during more recent WTO negotiations.

But Mr Aherne said that if progress was to be achieved, more movement would be needed from the United States and other developing countries.

"The EU has moved on Cap reform. Everyone knows our stance and the progress we have made.

"The United States have been talking about wanting a deal, but they haven't put anything concrete on the table.

"Until you see the money, any talk of an agreement is premature. Brazil is very insistent on getting access for their agriculture, but don't seem to be very keen on giving access in the area of industry and services.

"India is being very defensive. These countries have to move if there is to be any deal."

US representative at the talks Rob Portman said it was up to the EU to make further concessions on agricultural subsidies in order to ensure a deal could be struck.

"If Europe doesn't move, no-one will move," he said.