May 4, 2006 IN THIS ALERT: Portman, Vaile Release Joint Statement on Prospects for a Successful Doha Round Outcome Lamy: There is "No more time to spare" in the Trade Negotiations Recent OECD, WTO Reports on China Portman, Vaile Release Joint Statement on Prospects for a Successful Doha Round Outcome On May 2, U.S. Trade Representative Rob Portman and Australian Trade Minister Mark Vaile released a joint statement expressing their concern about the missed April 30 deadline for WTO Members to agree on modalities for agriculture and industrial tariffs in the Doha Round.  They acknowledged that there is only a short time left to make breakthroughs in the negotiations, but stressed that a successful conclusion is still possible “with the right level of political will” and “flexibility.”  Portman and Vaile also declared their support for intensified negotiations, indicating their willingness to work with Members to "ensure that substantial improvements in market access are complemented by substantial reductions in trade-distorting agricultural domestic support, substantial reductions in industrial tariffs, and meaningful openings in services.” Click here for their statement. Lamy: There is "No more time to spare" in the Trade Negotiations In his introductory statement to the Trade Negotiations Committee on May 1, WTO Director-General Pascal Lamy warned that there is "no more time to spare" in the trade negotiations and urged Members to use their "collective determination and effort to breach remaining gaps and find consensus." Lamy maintained that consensus "remains doable, but only if a sense of urgency—which I feel is not always shared by you all—starts appearing in each and every delegation."  He also discussed the progress of the major areas of negotiation.  Lamy stated that serious progress is being made in the services negotiations, noting that since the last TNC, twenty plurilateral meetings have been held, based on twenty-two submitted collective requests, and there is another round of request-offer meetings scheduled for mid-May to maintain the momentum of these negotiations.  Click here for Lamy's statement. Recent OECD, WTO Reports on China   OECD According to a new OECD report, China needs to reform its rules and regulations for cross-border mergers and acquisitions in order to attract foreign investment.  The April 18 report, "Investment Policy Review of China 2006:  Open Policies Toward Cross-Border Mergers and Acquisitions," recognizes that China has made incremental progress but stresses that more needs to be done.  The key concern is that "China's regulatory framework for cross-border M&A remains a complex and incomplete patchwork of laws, regulations and policy decisions," characterized by a lack of transparency and "low standards of corporate transparency and disclosure."  The OECD recommends increased transparency, a streamlined approval process for cross-border M&A, and the relaxation of foreign ownership restrictions.  Click here for more information. WTO China's trade and investment liberalization has resulted in impressive economic growth and poverty reduction, according to a WTO Trade Policy Review.  China has become the world's third largest trader and one of the largest recipients of FDI, with real GDP growth averaging 9%.  The report asserts that this growth is "driven mainly by exports and investment, especially as trade and investment reforms have increased."  The report applauds China for its shift away from direct intervention in the economy.  However, it also cites Members' concerns that the Government is still providing "guidance," and that there is a lack of transparency in policymaking and implementation.  The report also notes that the liberalization of China's services sector is lagging behind that of other sectors.  It encourages China to place greater emphasis on removing barriers in services, particularly in the banking, insurance, telecommunications, and transport sectors, which "are characterized by significant state ownership and little private, especially foreign, presence."  Click here to read the report.