November 2, 2005
IN THIS ALERT:

EU Submits Revised Offer on Agriculture

On October 28, the EU submitted a revised offer on domestic support and  market access for agricultural goods in which it indicates it is prepared to accept a 70% reduction in Aggregated Measures of Support (AMS) and to cut "de minimis" support for all developed countries by 80%.  The EU proposed a three-band system on overall reduction in trade-distorting subsidies, offering to make a 70% cut in the first band, requiring a 60% cut of countries in the second and a 50% cut of those in the third.  The offer proposes a tariff reduction formula in which countries employing higher tariffs would make deeper cuts.  

The US, the G-20,and the Cairns Group expressed disappointment with the offer, noting that the proposed tariff reductions were still lower than those proposed by the US and the G-20 developing countries.  The offer was also criticized for including a number of exceptions for so-called sensitive products.  Click here for a copy of the revised offer.

Poll: Services, NAMA Progress Impossible Without Agriculture Deal

In a recent poll of trade policy officials and specialists by the Institute for International Business, Economics & Law (IIBE&L), 98% of respondents agreed that it will not be possible to make progress in the WTO services and goods negotiations without a breakthrough on agriculture prior to the Hong Kong Ministerial.  Overall, 58% of those surveyed believe that a failed Ministerial Conference would likely doom the Doha Round.  On services, 71% of respondents said that Hong Kong should set a new target date (perhaps March 31) for the next set of revised offers or for initial offers.  For more information, contact Andrew L. Stoler, Executive Director, IIBE&L, at andrew.stoler@adelaide.edu.au.  

IMF, World Bank Heads Issue Statement on Doha Round

On October 30, Rodrigo de Rato, Managing Director of the International Monetary Fund, and Paul Wolfowitz, President of the World Bank Group, called on WTO members to reach agreement on agriculture in order to move the Doha Round forward.  "WTO member governments have the chance to move collectively toward more open markets, lifting millions of people in developing countries from poverty and boosting growth in rich and poor countries alike. This opportunity may be lost in the coming days unless key governments face down interest groups that would perpetuate high trade barriers benefiting relatively few at a cost to many. Failure would cast a shadow over the multilateral trading system and further embolden protectionists, at a time when the world needs cooperation rather than conflict,” the statement said.  Click here for a copy of the statement.

Saudi Arabia's WTO Accessions Negotiations Conclude

On October 28, the Working Party on the accession of Saudi Arabia concluded negotiations. WTO Director-General Pascal Lamy welcomed this development, stating "This is a very important step in Saudi Arabia's accession to the WTO. I am glad to see that the tremendous amount of work done by Saudi Arabia has now brought it closer to WTO entry. We look forward to confirmation by the General Council in the days to come." The General Council is expected to formally approve the accessions package at their meeting scheduled tentatively for November 11.  Click here for more information on Saudi Arabia and the WTO. 

CSI Testifies at Senate Doha Round Hearing

 On October 27, the Coalition of Service Industries testified before a Senate Finance Committee Trade Subcommittee hearing on the Doha Round.  In explaining the reasons for limited progress in services negotiations, Jeff Shafer, Citigroup's Vice Chairman of Global Banking, noted that the lack of agreement in agriculture has placed the talks far behind schedule and left insufficient incentives for some members to negotiate seriously.  He also said that progress is contingent upon concessions on other issues such as business travel facilitation.  Click here for a copy of the testimony.

WTO: World Trade in Commercial Services Grew 18% in 2004

Worldwide trade in commercial services grew in nominal terms by 18% to $2.1 trillion in 2004, up from the 14% growth recorded in 2003, according to the the WTO's annual publication "International Trade Statistics" released on October 27.  Transportation services expanded by 23% to $500 billion, which was the strongest increase among all services categories.  Europe accounted for more than one half of world commercial services exports and Asia's commercial services trade experienced strong growth.

For more information click on the following links:
Press Release
International Trade Statistics 2005
More on International Trade Statistics