Failure of Doha talks will knock deals on climate, food and energy
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18/07/2008
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Financial Times (London)
International agreements on climate change, food security and energy use could drift beyond reach if next week's Geneva talks on liberalising world trade collapse, Peter Mandelson, the European Union's chief trade negotiator, warned on Thursday.
"The chances for a breakthrough are improving, but that breakthrough is not yet in the bag,' said Mr Mandelson.
A Doha deal was important, he said, because "the global economy faces a barrage of problems... It would bring fresh confidence to a world economy that is certainly in need of it'.
Dozens of ministers and trade officials from Africa, Asia, Europe, the US and the rest of the world will descend on Geneva this weekend in what Pascal Lamy, the World Trade Organisation's director-general, has called a "moment of truth' for the seven-year-old Doha round of world trade talks.
Susan Schwab, US trade representative, told reporters in Washington that she felt a "sense of momentum' going into the talks and said a deal was "eminently do-able next week'.
But she warned that agreement did not depend only on the US, and called on advanced developing nations to make "meaningful market opening contributions in all of the pillars' of the talks.
Disputes persist between rich developed countries and less prosperous but fast-growing developing countries over access to each other's markets for industry, services and agriculture.
There are also frictions inside the EU, with Mr Mandelson under fire from Nicolas Sarkozy, president of France, which holds the EU's rotating presidency.
Mr Sarkozy accuses him of sacrificing the interests of European farmers without receiving guarantees of concessions from non-EU countries in industry and services.
Argentina, India and others are critical of proposals that, in their view, would oblige them to make disproportionate cuts in industrial tariffs and expose nascent sectors such as cars, chemicals and textiles to greater international competition.
Mr Mandelson said the modern era was witnessing "a huge reordering of the global economy and politics', with the rise of powers such as Brazil, China and India, and the Doha talks were the first attempt to negotiate a global pact in these unfamiliar conditions.
Additional reporting by James Politi in Washington