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WTO issues rules report

29th May 2008

By: Reuters

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The World Trade Organisation issued a document on Wednesday on rules ranging from fishing subsidies to anti-dumping, aimed at reassuring negotiators heading into trade-offs in the Doha round's core areas.

Uruguay's WTO ambassador Guillermo Valles Galmes, who chairs negotiations on trade rules, said the new working document would show negotiators that all options remained on the table.

An initial negotiating draft by Valles last November aroused concern from many WTO members that it ignored their interests in issues ranging from how to deal with unfairly priced imports to limits on subsidies to prevent overfishing.

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Since then many of the WTO's 152 members have tabled counter-proposals, some of which are mutually exclusive.

"It is evident that all proposals and issues remain on the table, that there are very serious concerns on the part of many if not all delegations about the first drafts, and that their revision will be necessary," Valles said in the document's cover note.

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The Doha round, launched in late 2001 to free up world trade and help developing countries export more, faces a critical few weeks possibly culminating in a meeting of ministers to reach an outline deal.

To enable negotiators including ministers to concentrate on the core areas of farming and manufactured goods in the coming weeks of talks, the document assures them that no one's position has been ruled out.

The 282-page document, comprising a cover note and three annexes on anti-dumping, subsidies and countervailing measures, and fisheries subsidies, combines the previous negotiating draft with a consolidation of other proposals and comments on them.

COMPROMISES NEEDED

Valles said this would stimulate further talks, enabling him to draft a revised negotiating text if the necessary compromises emerged. That is only likely after big political decisions have been taken in the agriculture and industrial goods talks.

Diplomats and trade officials say the rules talks have seen little genuine negotiation or readiness to compromise so far.

But as in any negotiation, even the most intractable differences -- such as the issue of "zeroing" pitting the United States against all other WTO members -- can be resolved in principle, as every position has its price.

Zeroing is the most contentious issue in anti-dumping, which sets rules for dealing with imports that are "dumped" or sold at below their price in the home market.

Washington wants the WTO to formally recognise "zeroing", a method it uses to calculate punitive duties on these cheap imports and which ignores cases where the goods actually cost more than in the exporting country.

On fishing, many countries agree that there should be limits to subsidies, for instance on fuel, to prevent overfishing. But developing countries in particular such as India are seeking exceptions for their small-scale fishermen which environmental advocates say could be abused by both rich and poor countries to continue industrial-scale fishing.

"The future of the world's fishery resources are at stake in the Doha round," said advocacy group Oceana, which earlier this week released a study showing more than 80 percent of the world's fisheries cannot withstand increased fishing activity.

"The economic hardship that fishing communities everywhere are now facing as a result of systematic overfishing make WTO action to control destructive fisheries subsidies even more urgent," it said.


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