Mixed reaction after deal puts world trade negotiations back on track

EUROPEAN economic giants Germany, Britain and France warmly welcomed a deal yesterday to salvage world trade talks.

However, China complained developing countries were not satisfied and an environmental group hit at “empty promises.”

German economy minister Wolfgang Clement said the 147-member World Trade Organisation (WTO) had achieved “a substantial step forward”.

French Agriculture Minister Herve Gaymard told France Info radio it was a good and balanced accord that “consolidates the European common agricultural policy and does not question the reforms decided a year ago.”

For Britain, the world’s fourth largest economy, Trade and Industry Minister Patricia Hewitt described the accord as “a crucial step on the road to delivering a trade round that will benefit all of us, especially developing countries.”

But trading powerhouse China was more stinting in its praise. “Generally speaking, the framework (agreement) is not bad, though the developing countries are not fully satisfied,” said Sun Zhenyu, China’s ambassador to the WTO.

The agreement, which was finalised on Saturday holds out hopes for a final pact that would cut tariffs on agricultural and industrial goods, slash farm subsidies in rich countries and make it easier for financial and service industry firms to work across borders.

It puts talks back on track after a collapse nearly a year ago in Cancun, Mexico that pitted developing countries like Brazil and India against rich WTO members such as the US and EU.

However, environmental group Friends of the Earth criticised as “empty promises” the concessions made by Washington and Brussels on agriculture. “The commitment to eliminate export subsidies credits is missing any substance as no end date is mentioned in the text.”

The group also called the talks secretive and undemocratic because non-government organisations and many countries were unable to join negotiations.

Oxfam also said it was not happy with the result.

“We are very disappointed. In effect these talks move us forward a few inches when we were expecting a few miles,” said Justin Forsyth, Oxfam’s policy director.

“In some areas, we actually could even have gone backwards.”

Japan said that rather than an agreement being reached, the deal meant negotiations were back on track.

EU farm unions said the WTO deal protected EU agricultural policy and called on EU authorities to make sure it stayed that way in future negotiations.