The following issues are central to the deadlock in the Doha Round negotiations among the 148 World Trade Organisation governments.
FARM TRADE: This accounts for just 10 percent of global commerce but is of enormous importance to the economies of developing countries. They are resisting concessions in other areas until rules are made fairer in the agricultural sector.
THE "THREE PILLARS" OF THE FARM TALKS ARE:
EXPORT SUBSIDIES
These are judged to be the most damaging to fair trade because they weigh on global prices and penalise producers in poor nations. The European Union, which relies heavily on subsidies, has been ready to discuss their elimination but dates vary for particular products.
Other countries want them halted by 2010. In exchange, Brussels wants an end to export credits and food aid by Washington that are also seen as undermining poor farmers as well as tougher rules for state export companies in Canada and Australia.
DOMESTIC SUPPORT The United States has offered a 60-percent cut in support for US farmers in what is known in WTO jargon as the "Orange Box" - the most trade-distorting government subsidies that are directly linked to price or production levels.
In return, Washington wants Japan and the EU to make a cut of around 80 percent on the grounds that they are allowed to spend more under current WTO rules.
The United States has also proposed limiting to 2.5 percent so-called "Blue Box" support, which is not linked to production and is seen as less harmful to trade. These proposals have been criticised as insufficient by developing countries.
MARKET ACCESS The European Union is under fire from exporters such as Brazil, Australia and the United States. They say the EU offer to cut duties by between 35 and 60 percent does not go far enough.
Brussels also wants to keep higher tariffs on around 160 farm products that are under WTO rules it has classed as "sensitive." Net food importing countries such as Japan and Switzerland, which also want to protect vulnerable or culturally important parts of their farming, oppose the idea of a ceiling on duties.
INDUSTRIAL GOODS: Rich countries are seeking a generalised cut in import tariffs according to the "Swiss formula," first set out by Switzerland's negotiators. It would oblige all WTO members to reduce their tariffs to below a fixed level - the EU says it should be 10 percent. Developing countries would benefit from "special and differential treatment" but are pressing for a smaller tariff reductions to protect their industries.
SERVICES: Covering 163 sectors including banking and insurance, the talks are based on a "request-offer" process where countries ask their trading partners for liberalisation in specific areas and the latter come up with their own proposals in return. But fewer than 100 members have made an offer. The EU wants developing countries to liberalise 139 sectors but the latter only want reforms in 93.
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