The Consultative Group (Green Room) which missed the European Union and Switzerland last Wednesday night in talks held its second round on Thursday night aimed at reaching consensus on a development package for the least developed countries (LDCs).
The Green Group which comprises ministers of WTO member countries was making all out efforts for a breakthrough in the talks which according to the analysts would not be materialised until some agreement on the agriculture and the non-agriculture market access (Nama).
The developing countries have urged the United States and the European Union to offer fresh concession on agriculture to break a logjam in trade talks.
Green Room meetings are organised by the WTO director-general, and usually about 30 to 40 trade and commerce ministers representing a variety of views are invited.
In the last Green Room meeting, WTO Director-General Pascal Lamy asked the member countries to improve the text by adding more details where they had consensus. In response, the members began to compose a list of issues that they had to add to the text in Hong Kong.
On Thursday, EU Trade Commissioner Peter Mandelson said that he has nothing new to criticise the US for cotton subsidies.
"US negotiators of 'using a general smokescreen to dodge a specific commitment' to curb the annual $4 billion in aid given to cotton farmers", he said while addressing a press conference.
He also attacked on some other countries which according to him were reckless and unrealistic, adding that there should be reciprocal proposals to free up trade in industrial goods and services to match the EU's existing offer on farm products.
Replying to a question he said: "We will not succeed in Hong Kong or after, if we continue to focus on only one part of the round." According to sources, many members called for an agreed Hong Kong Text to call for an end date on exports subsidies of 2010.
They said other issues on the list included the treatment of sensitive items, disciplines on state trading enterprises, export credits, and food aid and the levels of thresholds for a tariff reduction formula.
Members have already agreed to formula in which higher tariffs would be cut more than low tariffs. The thresholds would determine the breaking points for those cuts.
The deadlock between the two major players of WTO ie the EU and the US has prevented progress being made in other areas such as opening up trade in manufactured goods and services. The US was of the view that there would be no progress on issues unless the EU movers on market access.
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