Crunch WTO trade talks in Hong Kong later this month must make "significant progress" on global trade liberalisation, the Group of Seven richest nations said in a communiqué wrapping up two-day talks on Saturday.
Its call came after developing countries Brazil, China and India moved to break a deadlock threatening to derail the key World Trade Organisation ministerial meeting between December 13 and 18. The G7 "welcomed" statements on trade liberalisation from developing nations, whose finance ministers had met with their G7 peers and central bank governors in London.
The final communiqué urged nations to "make significant progress on market access in agriculture, industrial products and services".
It also said global economic growth should remain solid, though it is likely to be slowed by volatile oil prices, while warning that "vigorous" action is needed to deal with global trade imbalances.
The group added "further flexible implementation" of China''s yuan revaluation policy would improve the global economy.
The G7, meanwhile, paid tribute to outgoing US Federal Reserve chief Alan Greenspan, 79, who retires at the end of January.
Regarding the crucial WTO meeting, the G7 communiqué argued that progress must be made on "reducing trade-distorting domestic support" and "eliminating all forms of export subsidies in agriculture".
"The Hong Kong Ministerial in 10 days will be a critical step, and the opportunity must be seized to make progress through agreeing a comprehensive development package that addresses the concerns of developing countries," it added.
G7 member France, who is a major beneficiary of EU farm subsidies, was pleased with the wording of the communiqué.
France was "happy to have obtained total support" from its G7 partners, French Finance Minister Thierry Breton told a press conference.
Breton had on Friday insisted that there had to be a "complete package" of deals reached in Hong Kong, adding that agriculture was not the only stumbling block.
Earlier, officials from developing countries said they were willing to take action allowing rich nations greater access to their industrial goods and service sectors. However, this would be in return for the United States and the European Union conceding ground over the crucial issues of agricultural subsidies and tariffs.
Rich and developing nations accuse each other of setting tariffs that are too high.
The Doha Round of trade talks, launched in Qatar in 2001, is in deadlock largely because of problems in farm trade talks among the WTO''s 148 members.
Poor countries have until now resisted speeding up parallel discussions on opening up trade in their industrial goods and in services, such as banking, until the farm issue was settled.
Britain''s Chancellor of the Exchequer Gordon Brown, whose country holds the rotating presidency of G7 and G8 this year, as well as of the European Union, said on Saturday progress at Hong Kong could increase global income by dollars 300 billion over the next 10 years.
Brazil, for its part, was "ready to move its position on industrial tariffs provided that the United States and the European Union move too in agriculture", the country''s Finance Minister Antonio Palocci said on Saturday.
India had told the G7 that it would make proposals over services'' negotiations, while China had called also for new trade proposals, Brown said.
There was now "some urgency" in talks before the Hong Kong gathering, Brown added calling Brazil''s proposal in particular a "very significant step forward".
"We do believe this has been a (G7) meeting where we have shown that the world wishes to see the trade talks in Hong Kong coming to a successful conclusion," Brown told reporters.
Britain is calling for the abolition of all EU farm subsidies, while EU trade commissioner Peter Mandelson has said there must be progress on other issues as well.
The G7 group of industrialised nations comprises Britain, Canada, France, Germany, Italy, Japan and the United States. The wider G8 also includes Russia.
Comments
Comments are closed.