African Union Adopts United Front for Trade Talks

Posted 18 January 2007 @ 08:12 am EET     Print     Reprint     E-Mail     Comments

ADDIS ABABA (AP) - African Union ministers adopted a united front for global trade talks at a summit, calling on Western countries to scrap agricultural subsidies to allow African imports to compete. In a declaration that was unanimously adopted at a summit here, the ministers called for "the rapid elimination of all forms of export subsidies."

"We urge the main commercial partners to demonstrate flexibility and to show the necessary political will to facilitate the full resumption of talks and to bring them out of the impasse," the declaration said. The ministers had chosen a message of "firmness and unity," a AU Commission official told AFP.

The World Trade Organisation (WTO) suspended the latest round of trade talks in July last year after negotiators failed to reach agreement after five years of talks. Earlier on Tuesday WTO chief Pascal Lamy, also present at the summit, called on African nations to be more flexible.

"If we conclude this round, there will be many winners. If the negotiations fail, no doubt who will be the biggest loser: Africa. We all know that. This is the reality," said Lamy. Africa states must "alter their position in negotiations to avoid a return to deadlock," added Lamy during a visit to the African Union's headquarters in Addis Ababa for talks with trade ministers from the continent.

The Doha round, launched in the Qatari capital in November 2001, is deadlocked as Western and developing countries remain split on issues such as agricultural subsidies and market access. Developing countries want lower tariffs on their agricultural exports to US and European markets while industrialised nations seek greater access to developing and emerging nations for their industrial services and goods.

However recent bilateral talks between Lamy and senior US officials and with European Union Trade Commissioner Peter Mandelson have raised hopes that a deal can be salvaged. Lamy said that economic powerhouses, "particularly the heads of the G8 (group of eight industralised nations), have sent clear signals in the last few weeks and have given their negotiators instructions to conclude negotiations."

However Elizabeth Tankeu, AU commissioner for trade and industry, struck a less conciliatory line, saying that the impasse could "be attributed largely to the intransigence and the failure of the major players to show necessary flexibility." Lamy had also said the AU would strengthen its hand in negotiations if it took a united stand on Doha.

"As in any other area, unity brings strength and the WTO is among the international organisations where Africa has the greatest weight. It will find that in these negotiations, it has much to gain and little to lose. "If the Europeans, the Americans and the Japanese make the efforts that they must do, that's good news for Africa.

"Africa needs a fairer international farming industry, with less grants and less protection." Tankeu said Western countries had to rise to the challenge and stop just thinking above their own interests. "The focus of the negotiations has increasingly shifted from the issue of development of poor countries to the pursuit by the developed countries of their narrow national interest," said the commissioner.