Cancún deadline injects sense of urgency into WTO By Frances Williams in Geneva

Financial Times; Jul 22, 2003

Intensive negotiations begin today and are expected to continue through the summer in an effort to stop the Doha round of global trade talks from foundering when World Trade Organisation ministers meet in Cancún, Mexico, in seven weeks.

An outline ministerial text, released by Carlos Pérez del Castillo, Uruguay's WTO ambassador, who is this year's chairman of the governing general council, provides a salutary compilation of a dozen or so decisions ministers are supposed to take in Cancún. None has been agreed in Geneva, where WTO negotiators have missed every deadline set for accord.

Top trade officials will be in Geneva today ahead of a general council meeting later this week. They will try to move the negotiations forward, especially on matters of special importance to developing countries such as access to cheap medicines.

Key issues such as reform of agricultural trade will also be discussed at an informal "mini-ministerial" meeting in Montreal on July 28-30, attended by about 25 trade ministers from rich and poor countries.

Supachai Panitchpakdi, the WTO director-general, has repeatedly warned that leaving too much to ministers in Cancún is a recipe for failure. Their decisions, notably endorsement of basic guidelines for negotiations on agriculture and industrial goods, will be crucial in putting the Doha round on course for completion by the agreed deadline of January 1 2005.

"The somewhat skeletal nature of this first draft is a reflection of the reality of our present situation," Mr Pérez del Castillo said. "It reflects how far we still have to go in. . . key areas."

Decisions for the Cancún meeting include guidelines for agriculture and industrial goods; arrangements for easing poor countries' access to cheap imported medicines; how and whether to proceed with negotiations on investment, competition policy, transparency in government procurement and trade facilitation; a registration system of geographical names for wines and spirits; and measures giving more favourable treatment to developing-nation WTO members.

* The WTO's dispute settlement body yesterday established a panel to rule on the EU's complaint that South Korea unfairly subsidises its shipbuilding industry. Another panel will investigate Antigua's challenge to a US ban on internet gaming.

However, the EU temporarily blocked a request for creation of a panel to rule on complaints against its sugar regime by Australia, Brazil and Thailand; it cannot refuse a second request, likely next month.

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