30 September 2008

Brazil warns on Doha delays

The following was reported on in the 29 September 2008 edition of “Journal of Commerce”.

Brazilian foreign minister Celso Amorim warned Monday that the Doha Round of World Trade Organization talks could be delayed for another two or three years if negotiators don’t make significant progress this year.

“If we can reach an agreement on the conditions for trade this year, the following United States government, whoever it is, will already find something accomplished with the input of other countries and that would be far more difficult to change,” Amorim told journalists during a visit to United Nations in New York.

Amorim warned, however, that “if we take more time, the [Doha] Round could absorb anywhere from two to three additional years and in the meantime cotton farmers will suffer in Africa” or even die.

He explained that in the absence of a Doha Round agreement, African farmers will have to continue competing with American food subsidies and Indian food producers won’t have any safeguard mechanism to protect themselves against surges in agricultural imports.

The talks foundered last July when United States and India could not agree on details for creating a safeguard mechanism that would allow developing countries to raise their import tariffs when they believe that their markets are being flooded.

Amorim reiterated that Brazil is ready to facilitate an agreement between India and the U.S. on this key issue, “as long as all sides are willing to negotiate.”