"Neither industrial countries nor developing countries win upon suspension of WTO Doha negotiations", saysMinister for Foreign Trade and Development Paula Lehtomäki
Press release 259/2006
24 July 2006
"We would have needed positive news supporting the growth and stability of world economy. In the present situation, neither industrial countries nor developing countries win. In the ongoing negotiation round, our aim has been to both strengthen our own competitiveness and integrate developing countries in the world economy", says Lehtomäki.
WTO Director-General Lamy has decided to suspend the Doha negotiations as no sufficient progress was reached in the G6 meeting - between the EU, the United States, Japan, Australia, Brazil and India - over the weekend.
The most important source of disagreement was the liberalisation of trade in agricultural and industrial goods. Agreement among the G6 would have paved way for the continuation of negotiations with other WTO members. In the end, the most difficult issue proved to be that of cutting down on US farm subsidies. Despite the indications of further flexibility by the EU and others with regard to agricultural market access, the United States was unwilling to agree on such reductions of farm subsidies as would have been found significant by the others.
Desired results concerning better access of industrial goods to the markets of developed developing countries (such as Brazil and India) would have opened up significant business opportunities in both Finland and other European countries.
The suspension of negotiations makes it even more difficult to meet the expectations concerning the Doha Development Agenda with regard to improved market access of the products of developing countries.
"In the light of the information we have now, the completion of negotiations by the end of this year as envisaged seems all the more difficult." Lehtomäki underlines, however, "that the EU is still willing to do its utmost to give new impetus to the negotiations".
"Despite the suspension of negotiations it is important to ensure that the WTO system remains the cornerstone of international trade. Global trade rules are an integral part of global economy. Multilateral negotiations are the only way to protect the interests of weaker negotiating partners and to ensure a balanced outcome", considers Lehtomäki.
Further information: Satu Mäki, Special Adviser to the Minister, tel: +358-9-1605 6306