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Global trade talks, possibly resumed by July, could founder again if rich nations raise thorny issues with developing economies, Malaysia's Trade Minister Rafidah Aziz warned Saturday.
Developed nations agreed to drop three of four so-called Singapore issues when World Trade Organisation (WTO) talks resume to draw up new trade rules.
Deadlock over the issues - trade facilitation; cross-border investment; cross-border competition; and transparency in government procurement - was partly to blame for the collapse of the Doha round talks in the Mexican city of Cancun in September.
"It is wise for everybody to learn the lessons of Cancun," Rafidah said in the sidelines of a trade ministers meeting of the Asia-Pacific Economic Co-operation (APEC) forum, which concluded at the Chilean resort town of Pucon.
Developing nations opposed addressing the four Singapore issues in Cancun, saying they were not then prepared for what some termed radical trade liberalisation.
Since the Cancun debacle however, developing nations agreed to negotiate trade facilitation, while industrialised economies withdrew the rest.
The United States, Japan and South Korea, all of whom had campaigned for inclusion of all four Singapore issues, issued a joint statement Saturday in which they accepted trade facilitation as the only Singapore issue in the upcoming WTO talks.
Trade facilitation aims to make doing business easier and less costly.
But some developing nations believe the rich countries may have placed the three issues on the back burner until an opportune time. There are two conflicting viewpoints on this within the WTO, said Rafidah, who has held her portfolio for the last 18 years and represented the country in the Doha and its predecessor Uruguay rounds of global trade talks.
She said that nations such as Japan and South Korea adopted a "one plus three formula" - meaning trade facilitation would be discussed now and the other three raised later.
"Malaysia, and I am sure many others, have the "four minus one" approach - meaning only one of the issues be accepted and the other three dropped for good."
Rafidah warned that if developed nations "keep pursuing this one-plus-three principle, then the next Geneva meeting in July will not result in anything."
She said she had reminded her Apec counterparts that such "contentious issues" be not raised at all since there was now convergence on trade facilitation.
"In fact, I have suggested that let's not call them Singapore issues or any new issues, just trade facilitation.

Copyright Agence France-Presse, 2004

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