WTO talks move into restricted session

Trade ministers began serious discussion of a draft final text for a World Trade Organisation agreement to launch a new round of global trade talks early this morning. The EU Agriculture Commissioner, Mr Franz Fischler, said the negotiations would continue after the agreed deadline and would "discuss a global package including all subjects". The talks in a "green room" is a restricted session of 25-30 of the 135 World Trade Organisation ministers, including the most powerful members, and is a formula used to try to move things forward more easily than in the full forum.

The US Trade Representative, Ms Charlene Barshefsky, who is chairing the WTO conference, had said on Thursday that the talks must end at 6:00 p.m. yesterday. However, it was clear by late afternoon that the deadline would not be met.

The talks, which began on Tuesday, are supposed to agree an agenda and timetable for a new round of trade liberalisation talks.

But there were still serious differences to be resolved when talks resumed early yesterday. The Minister of State for Trade, Mr Tom Kitt, identified "worrying" aspects for Ireland in various compromise proposals being circulated to resolve the delicate issue of agricultural export subsidies.

Ireland received about £313 million (€398 million) in subsidies for beef and dairy exports in 1998, according to Mr Tom Parlon of the Irish Farmers' Association. The EU position - which Ireland supports - is to oppose the US demand for the "elimination" of farm export subsidies but to agree to some "reduction" if the US also reduces its substantial farm aid system. The US is backed by the so-called "Cairns Group" of agricultural exporting countries including Australia, New Zealand and Canada. There was confusion when a proposal to move "in the direction of progressive elimination" of the subsidies was said to have the backing of the EU Commission which conducts the negotiations for the EU member countries.

But later Mr Fischler, said the text, while moving in a "positive" direction, did not "sufficiently reflect EU core positions". The Commission was also said to have changed its position on the setting up of a WTO working group on bio-technology. The US and Canada - who want to get rid of the EU ban on the import of GMO foodstuffs and seeds - proposed the group, but environmental bodies argued the WTO was not the right forum to discuss the health aspect of these foods. The Commission, which first agreed to the working group, was criticised by EU ministers for acting without consulting them. President Clinton, who spent two days in Seattle, also caused problems when he said he favoured introducing WTO sanctions against countries which violate international labour standards. But developing countries which see them selves as the eventual target of such sanctions expressed anger.

In a statement, the Organisation of African Unity complained that it was being "marginalised" at the summit. It said: "Under present circumstances, we will not be able to join the consensus required to meet the circumstances of this ministerial conference." The US desire for greater openness and "transparency" in the workings of the WTO has also run into trouble. Some European delegates have complained that there are already too many officials at the summit.