WTO Trade Talks Collapse in Mexico Amid Differences Between Rich and Poor
Nations, Delegates Say

The Associated Press

CANCUN, Mexico Sept. 14 ?
Talks designed to change the face of farming around the world collapsed
Sunday amid differences between rich and poor nations, the second failure
for the World Trade Organization in four years. Some poor nations
celebrated what they called a victory against the West.

"It's over," said George Odour Ong'wen, a Kenyan delegate. "The differences
were very wide, and it was impossible to close the gap."

Developing nations, many of which had banded together to play a key role in
negotiations, wanted to end rich countries' agricultural subsidies.
European nations and Japan were intent on pushing four new issues that many
poor countries saw as a distraction.

In the end, it was the diverging agendas of 146 member countries that split
delegates beyond the point of repair. Many poor countries accused the
United States and Europe of trying to bully poor nations into accepting
trade rules they didn't want.

"Trade ministers have been pressured, blackmailed," said Irene Ovonji
Odida, a delegate from Uganda.

Many poorer nations took the collapse as a victory.

"The developing countries have come into their own ... because they hung
together," said Malaysia's minister for international trade and investment,
Rafidah Aziz. "This has made it clear that developing countries cannot be
dictated to by anybody."

Before the talks collapsed, delegates spent Sunday debating not the key
changes to farming policy that they have spent much of the conference
negotiating, but instead four proposals about foreign investment and
competition.

Delegates said the Europeans agreed to back off on three of the proposals,
but insisted they be granted one. South Korea insisted all four be taken up
together, and African nations refused to negotiate on any of them,
according to an EU official who spoke on condition of anonymity.

He said given the irreconcilable differences, the meeting's chairman,
Mexican Foreign Secretary Luis Ernesto Derbez, chose to end the meeting.

The announcement appeared to take some delegates by surprise. One
journalist ran into a briefing by U.S. trade officials, demanding reaction.
Deputy U.S. Trade Representative Josette Shiner was startled and said she
would look into it.

U.S. officials later blamed what they said were countries more interested
in flowery speeches than negotiations.

"Useful compromise among 148 countries requires a serious willingness to
focus on work not rhetoric to attain the fine balance between ambition and
flexibilty," U.S. Trade Representative Robert Zoellick said in a statement.

The collapse was similar to the downfall of talks in 1999, when street
riots and divisions between WTO members sunk attempts to launch a new round
of trade negotiations. In Cancun there were protests as well, but they
didn't gather the momentum that demonstrations did in Seattle.

The failure in Cancun was a major blow to the WTO, and called into question
the organization's ability to reach a global trade treaty by the end of
next year a goal WTO members set for themselves at a meeting two years ago
in Doha, Qatar.

"No one can feel satisfied with a failure," said Argentina's trade
secretary, Martin Redrado. "All of us would have better with new rules."

He said delegates would have to "pick up the pieces and look for a new
consensus." But he said that would likely not happen until 2005, at the
earliest.

"For this, you need political will," he said. "My reading is, there is no
political will."

Many poor nations were frustrated that officials delayed discussion of
agricultural reform. Delegates had hoped to slash subsidies rich nations
pay their farmers, making it easier for their farmers to compete in a
global economy. They also wanted to lower the tariffs many countries charge
for importing farm goods.

Doing so could have dramatically altered farming around the world. Some
farmers could have found new markets for their crops. Others would have
struggled to compete without the subsidies that keep them in business.
Consumers could have gotten cheaper fruits, vegetables and meat from
distant shores.

Advocacy groups, who spent much of the meeting working with developing
nations to make sure their voices were heard, sang and danced in the
hallways of the conference center as the talks collapsed. Many hugged one
another.

"Our world is not for sale, my friend, just to keep you satisfied," they
sang to the tune of the Beatles' "Can't Buy Me Love." "You say you'll bring
us health and wealth, well we know that you just lied."

On the Net:

www.wto.org
www.maketradefair.org

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