[WTO Doha Round] Three To Fight For Free Trade

from Graphic Ghana

India, Brazil and South Africa are working to set up a free trade area they hope will eventually take in the continents they represent.

The three made the pact at talks ahead of an informal World Trade Organisation (WTO) meeting in Rio de Janeiro.

The action is on a separate track from the WTO's continuing efforts to free trade between rich and poor nations.

"The final objective of our three countries is a free trade agreement," India's external affairs minister said.
Anand Sharma added that the group held "immense trade perspectives".

The trio — known as IBSA and part of the G20 group of developing nations — has been frustrated by the WTO's lack of progress at breaking down trade barriers.

As a result, on Thursday, they agreed to strengthen their bargaining power at the WTO by boosting their trade links.

Over the past two years, Brazil's trade with India has surged 170 per cent, while its trade with South Africa has risen 86 per cent.

And if a formal alliance is agreed, Brazilian Foreign Minister Celso Amorim expects trade to surge.
"The aim here is to come to a free trade agreement," he said.

"With a trilateral treaty, trade will multiply. It isn't unthinkable to dream of $14bn to $15bn in a few years' time."

Mr Amorim is also currently working to persuade South America's trade bloc, Mercosur, to expand its trade agreements to take in India and South Africa.

At a recent trade talks in London involving trade chiefs from six of the world's top commercial powers, some level of progress was made but there was no breakthrough at the end of the day.

The ministers were trying to move ahead WTO efforts to break down global trade barriers.

Europe's trade chief Peter Mandelson, who chaired the meeting, said they had "made progress in a number of areas".

But India was more downbeat, and Brazilian Foreign Minister Celso Amorim said the talks "lacked urgency".

"I think that the click is not yet there to have a deal," Mr Amorim added.

'More to be done’

Indian Commerce Minister Kamal Nath said "more understanding of the opportunities of poorer nations" was needed.

But US trade representative Rob Portman said differences had been bridged "across the board".

"We can understand the good, the bad and the ugly of what a potential deal might look like," he added.

Aid groups — which have been urging richer nations to make more concessions to developing ones — were critical of the lack of progress.

"The EU and US have stuck to their inflexible positions ... expecting poor countries to move first," Oxfam said.

"In doing so, they have put this round in jeopardy."

Deadline looms

The meeting — also involving Japan and Australia — had hoped to produce some agreement on key issues ahead of an April deadline to agree to a "road map" for a global trade treaty by early 2007, at the latest.

Correspondents say political decisions are needed that will expose businesses and firms to more competition from abroad if the negotiations are to conclude.

If there is further delay, it may not get through the US Congress.

Congress has a special procedure for trade deals, which expires in 2007.

However, the EU and US continue to disagree over how far they can go to reduce tariffs on agricultural imports and domestic farm subsidies — a key issue for the world's poorest countries.

Europe wants substantial reductions in tariffs on manufactured goods, and greater priority to be given to freeing-up trade in services such as finance and IT.

Critics say what is currently on offer will do little to combat poverty — one of the main stated aims when the talks began.