China looks for substantive progress in WTO Meeting
13/12/2005 14:05
"China firmly supports the WTO talks on the Doha Development Agenda, hoping
the imminent Hong Kong meeting will achieve substantive progress," said Zhang
Xiangchen, director of the Department for WTO Affairs under the Ministry of
Commerce (MOFCOM).
China hopes this round of talks will end by 2006 as
scheduled and that the Hong Kong meeting will get "early harvest" in areas where
the members have reached broad consensus, Zhang said.
The sixth WTO's
ministerial meeting, the international organization's top decision-making body,
is scheduled from Dec.13 to 18 in Hong Kong.
The Doha Development Agenda
was kicked off as a new round of talks to liberalize trade in November 2001
during a WTO members' meeting in the Qatari capital, Doha.
The original
aim of the Doha Round was to conclude a treaty by Jan. 1, 2005, but now the
members hope to make it by the end of 2006.
An impasse over farm trade
is believed to be the crux of the Doha Round talks, according to analysts.
Developing countries want developed countries, including European Union,
the United States and Japan to cut down their farm subsidies and import tariffs.
However, the latter are unwilling to do so in the excuse that their
governments are faced with great pressure from domestic agricultural
organizations.
Meanwhile, the developed countries demand the developing
ones to cut tariff on manufactured goods and to open up service sectors to wider
international competition.
In early November, the WTO Director General
Pascal Lamy proposed a readjustment of vested goals, essentially a tune-down,
for the upcoming WTO's ministerial conference because progress at the moment was
insufficient to produce a package that could comprehensively address all major
issues in the Doha Round.
Is it a time that the 148 members of WTO have
to take a cold-eyed perspective at what can realistically be achieved in Hong
Kong?
The MOFCOM official Zhang acknowledged it as pragmatic to set a
lower expectation for the Hong Kong session, however he encouraged the WTO
members to keep their ambition in promoting the Doha-Round negotiations.
"All members try to consolidate what they have achieved in previous
talks, and at the same time, press forward in a step-by-step manner." said Cheng
Guoqiang, researcher with the Development Research Center of the State Council.
Yet no one will put the cards on the table until the last minute, he
noted.
According to an analysis released by the World Bank, if the Doha
round negotiations can meet its goals, the total returns on global trade is
likely to increase by 300 billion US dollars.
It is estimated that of
the 8 trillion US dollars world trade volume, only a small portion of 700
billion were on agricultural products with high tariff rates. But there is great
potential for increasing returns through a cut of tariffs.
At present,
the world average tariff rate levied on agricultural products is 62%. The rate
is even set at 700%to 900% for some products in certain members such as rice in
Japan.
China's average rate of tariffs stays at 15.3%, a comparatively
low level. Only four members adopted lower rates than China.
According
to sources with the Ministry of Commerce, China supports to urge the developed
countries to substantially reduce all kinds of domestic support that distort the
global trade and to call off their export subsidies in various forms before
2010.
"Fundamental corrections should be made to change the
long-distorted international trade on agricultural produce.
Those
exerting high tariffs and subsidies ought to do more to this end," said an
official with the MOFCOM, who declined to be named.
For the
participating members to the Doha round talks, their difference is actually not
only confined to agricultural issues.
Gap remains in addressing
non-agricultural problems, service trade and relevant rules.
Cheng
Guoqiang characterized the Doha round talks and other multi-lateral trade talks
as "step-by-step".
He said, "when the time is right, success is sure to
come. Only with full preparations to address all possible technical problems and
with the political will from all involved parties can the talks achieve its
goal."
Even if the Hong Kong meeting fails to be a breakthrough, it can
solidify what has been achieved in the past and facilitate talks in the future,
Cheng said.
Xinhua news
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