CBI calls for end of 'games' at Cancun

Friday, 12 September 2003 12:00 AM

Business leaders are calling on members of the World Trade Organisation (WTO) to stop 'playing games' and get down to the reality of negotiations.

The Confederation of British Industry (CBI) is warning of the 'irreparable damage' to global free trade that could result from the failure to slash EU and US agricultural subsidies.

The call comes amidst allegations that the US is trying to bully and bribe poorer countries out of the G21 group, which has threatened the traditional dominance of richer countries at the talks.

The campaign group, Action Aid, has accused the American delegation of bribing nations to drop out of the G21 with trade incentives. However, the US delegation has denied the accusation stating that the claims were 'outrageous' and groundless'.

The director general of the CBI, Digby Jones called on trade ministers to 'seize the moment' and continue the process of freeing global trade that they all had signed up to in Doha.

Mr Jones commented: 'Now is the time for action if the goal of free and fair trade to the benefit of developing and developed countries is not to be jeopardised.'

The CBI called on the EU and US to respond to the new G21 countries which are making significant demands for agricultural trade liberalisation.

Mr Jones claimed that the EU and US must 'practice what they preach' on global free trade by cutting distorting agricultural subsidies.

'Agriculture has become the biggest single block to progress in the Doha Development Agenda which has the potential to benefit billions of people', Mr Jones said. 'The EU and US will fail to win the case for global free and fair trade unless thy prove they can practice what they preach.'

The CBI highlighted the recent agreement on generic medicines which would see cheap drugs for HIV treatment being made available to poorer countries as an example of how an agreement can be reached.

Action Aid also accused the US and EU of attempting to rename subsidies to make them compliant with WTO rules.

Tim Rice, trade analyst from ActionAid UK, commented, 'Simply renaming subsidies fails to deal with the root problem of dumping. The EU and US cannot continue to ignore the growing call from developing countries to put their own houses in order. Any pro-development outcome from Cancun requires a significantly higher level of commitment from the richest countries.'

The WTO meeting today will continue talks on agricultural subsidies. Facilitator George Yeo Yong-Bon (Singapore) hoped that the talks today would narrow the gaps between the G21 and the US and EU. He said there was some indication of flexibility at yesterday's meeting, but delegations were still mainly keeping their cards close to their chests.

Tags: