LONDON, 3 August 2004 — European economic giants Germany, Britain and France warmly welcomed a deal on Sunday to salvage world trade talks but China complained developing countries were not satisfied and an environmental group hit at “empty promises”.
And although developing nations gained by persuading the rich world to cut agricultural production subsidies, poor African states could lose some of their existing preferential access to European and US markets.
German Economy Minister Wolfgang Clement said the 147-member World Trade Organization (WTO) had grasped the opportunity and achieved “a substantial step forward in world trade talks”.
French Agriculture Minister Herve Gaymard told France Info radio it was a good and balanced accord that “consolidates the European common agricultural policy and does not question the reforms decided a year ago”.
For Britain, the world’s fourth largest economy, Trade and Industry Minister Patricia Hewitt called the accord ... “a crucial step on the road to delivering a trade round that will benefit all of us, especially developing countries.” Trading powerhouse China was more stinting in its praise.
“Generally speaking, the framework (agreement) is not bad, though the developing countries are not fully satisfied,” the official Xinhua news agency quoted Sun Zhenyu, China’s ambassador to the WTO, as saying.
The agreement holds out hope for a final pact that would cut tariffs on agricultural and industrial goods, slash farm subsidies in rich countries and make it easier for financial and service industry firms to work across borders.
It puts talks back on track after a bitter collapse nearly a year ago in Cancun, Mexico that pitted developing countries like Brazil and India against rich WTO members such as the United States and the European Union.
Japan, the world’s second-largest economy and a major food importer, said that rather than an agreement being reached the deal meant negotiations were back on track.
Foreign Minister Yoriko Kawaguchi said: “It includes the elements needed to bring about a balanced final agreement, but at the same time allows for Japan to make its case on sensitive agricultural products at future negotiations, so I think we should rate it highly.”
US officials were upbeat about the WTO deal. US officials said they were pleased with the deal on agriculture to cut export subsidies, reduce domestic support and restrict export credits — a plan that would mainly affect wealthy European countries, Japan, South Korea and the United States.
“This framework agreement indicates the commitment of the member countries to a fair and equitable global marketplace,” US Agriculture Secretary Ann Veneman said in a statement Sunday.
