European Union 'backs big business' in trade talks

World Development Movement

WORLD DEVELOPMENT MOVEMENT

PRESS RELEASE

For immediate release: 29 July 2005

Trade talks head for autumn of discontent

The European Union has once again demonstrated that the interests of European big business are its top priority in these talks, claimed development campaigners the World Development Movement (WDM) in Geneva today. Despite the 'development round' rhetoric the interests of the poor are being opposed, sidelined and ignored.

WDM Head of Policy Peter Hardstaff today said: "Attempts by developed countries, corporate lobby groups and Supachai Panitchpakdi to create a sense of crisis in order to ramp up the pressure for a deal have failed. We have not seen a repeat of last year's July General Council meeting where a last minute stitch-up was achieved by a small group of countries whose Ministers were present. Many developing countries have this time stood their ground in the hope of a more considered and transparent process."

"Developing countries have withstood rich country attempts to push for drastic cuts in developing country industrial tariffs, for the moment. They have also resisted the EU attempt to create a procedural straightjacket, known as âbenchmarkingâ, to force countries to sign up more of their services to WTO rules. In this context, no âprogressâ is a good thing."

"Far from being a âcrisisâ, the fact that no deal has been done in Geneva, rather than a bad deal being forced through by the major trade powers at the last minute, is cause for relief."

Speaking at the General Council the Jamaican Ambassador said: "If we would assess it now, then the development aspect is sadly lacking." This sentiment was also reflected by the African Caribbean and Pacific group.

Peter Hardstaff continued: "The EUÂŽs current negotiating objectives are to give little on agriculture and demand massive concessions from developing countries in talks on industrial tariffs and trade in services. The EU must perform a 180 degree reversal of this agenda for there to be any deal that would be in the interests of the poor. Failure to do this means that it would be better for the talks to collapse in Hong Kong."

"A range of issues of concern to the poorest, such as implementation issues, special and differential treatment and the continuing problem of access to medicines, have never been seriously addressed in talks. Meanwhile developed country offensive interests in trade in services and industrial tariffs continue to dominate the agenda."

"The world needs a multilateral trading system that works in favour of the poor. The current state of play in negotiations show that the WTO is a long way from that objective."

Supachai leaves, Lamy arrives

Commenting on the departure of Supachai Panitchpakdi as WTO Director General, Peter Hardstaff said: "While Dr Supachai has not plumbed the depths of partiality of his predecessor Mike Moore he failed to address the massive inequality in negotiating strength and untransparent processes which have consistently skewed the work of the WTO in favour of addressing the interests of rich member states rather than developing countries. He has done nothing to halt the practices of mini-ministerials and green room negotiations which disadvantage the weakest countries."

Several delegations, and the Africa Group as a whole, have expressed their anger at being excluded from negotiations during this General Council.

"Rich country delegations have made little effort to hide their excitement at the arrival of Pascal Lamy when negotiations start in the Autumn. It is unlikely that he will do anything to stop rich countries using undemocratic and untransparent negotiating tactics, such as Green Rooms, to get a deal," said Hardstaff.

ENDS