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The leaders of the Association of Southeast Asian Nations
(ASEAN) will urge all the members of the 149-nation World Trade
Organization (WTO), especially the major players involved in the Doha
Round trade talks, to resume and push forward with the negotiating
process.
"The impasse in the negotiations must be broken, and, to this end, WTO
members, particularly the major players, must demonstrate flexibility
by moving beyond their current positions in key areas of the Round and
display resolve in concluding the Doha Round in a timely manner," said
the draft of the ASEAN leaders' statement, which has been obtained by
The Jakarta Post.
The statement is scheduled to be officially issued when the 10 leaders
meet during Saturday's summit in Cebu.
The leaders also stressed that breakthroughs in the critical areas of
agriculture were needed to put the process back on track.
Negotiations on the sixth Doha Development Round in Geneva were
suspended indefinitely at the end of July because of a U.S. refusal to
give way on farm subsidies.
Many say that the trade talks failed as developed and developing
nations still had major differences with regard to full trade
integration. The trade talks can be revived, experts argue, only if the
industrialized countries, such as the United States and the European
countries, agree to reduce their farm subsidies as demanded by the
developing countries.
Some developing countries have accused the developed nations of wanting
more access to the developing countries but not wanting to remove their
agricultural subsides that result in trade distortion and make their
products artificially cheaper than the exports of the developing
countries.
"These subsidies act as unfair trade barriers preventing developing
countries from gaining more market access, for instance, in the U.S.
and EU," an official involved in preparing the draft said.
According to the recent WTO World Trade Report, the total amount of
subsidies worldwide has reached US$300 billion, of which $250 billion
are subsidies by the developed countries.
The same report said that while agricultural subsidies were on the
decline, "industrial subsidies were more prevalent in mining, coal,
steel, forestry, fisheries, shipbuilding and automotive industries".
In terms of promoting further progress in global trade, the ASEAN
countries argue that they have been at the forefront by entering into
free trade agreements with emerging market countries such as South
Korea and China. Negotiations for a free trade agreement are currently
underway with India.
"ASEAN members are prepared to make a contribution to ensuring an
outcome to the negotiations that will allow our economies to develop
and prosper. The Round offers a major juncture to put in place
significant reforms and reductions in trade-distorting farm support,
create meaningful and substantial market access in agriculture ... and
introduce improved WTO rules," the draft says.
The leaders, according to the draft, have instructed their ministers,
senior officials and representatives in Geneva to intensify their
efforts and involvement in the negotiations.
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