Wednesday January 07, 2009

WTO members spat over tariffs on industrial goods


Sunday, June 10, 2007

MEMBERS of the World Trade Organisation (WTO), already at odds over trade in farm goods, yesterday bickered over the level of customs duties to be applied to industrial products, WTO sources said.

They said developed countries wanted to limit the maximum level of their industrial customs duties to 10 per cent and the tariffs of developing countries to 15 per cent.

But poor countries argued that too much was being asked of them compared with the concessions rich countries were prepared to make in agricultural trade.

The figure proposed by developed countries "is not attainable, is not possible it's out", said Brazilian negotiator Clodoaldo Hugueney, as WTO members struggled to overcome differences that are preventing an agreement of the Doha round of trade liberalisation talks.

Brazil, India, South Africa and several other emerging market countries proposed a maximum industrial tariff level of 35 per cent for developing nations.

That suggestion was shot down by the developed world, with the European Union representative, Eckart Guth, calling the 35 per cent figure "astronomically high".

A number of developing countries, notably Chile and Mexico, also found the proposal unrealistic.

China, which joined the WTO in late 2001, meanwhile, argued that relatively new member countries should be given a longer time to apply trade-opening measures.

But the United States, without mentioning China by name, said it would not agree to allowing "a major country" to enjoy such a dispensation.

Negotiators hope to come to an agreement in principle on a Doha deal before the end of July. The talks opened in late 2001 in Doha, the Qatari capital, and were to have concluded in 2004AFP