Collapse Of WTO Negotiations In Geneva

In July 31st, the US, China and India failed to agree on the right of emergency protection for Asian countries to protect their own farmers' interests. On Tuesday, WTO negotiations broke down in Geneva.

The 9 day meeting was the longest trade diplomacy summit held in Geneva to complete a simple mutual accommodation: the EU and the United States should reduce agricultural subsidies and tariffs in exchange for China, India, Brazil and other emerging economies to open their industrial products markets, such as chemical products and automobiles.

Trade experts say that after 7 years of negotiations, the failure of the dialogue indicates that the global economy has undergone tremendous changes since the Doha round was launched in 2001. China, India and Brazil have become new trading powers after 2001.

Last week, negotiations between the 30 countries collapsed, but at midnight on Friday, Brazil shook hands with the United States, extending negotiations to the end of the week.

The United States agreed to limit its agricultural subsidies to $14 billion 500 million, and Brazil was willing to cut its industrial tariffs.

But at the end of the week, two developing country camps strengthened their position.

India's minister of Commerce and industry, Kamal Nath, and Chinese diplomats refused to compromise with the United States.

In particular, they have asked for a clause that allows them to impose special duties if certain products, such as sugar, cotton and rice, surge sharply.

Chinese officials said: "I can't afford to sacrifice millions of farmers' livelihood.

The United States is asking for a lot of money.

The United States did not anticipate such a tough stance on the so-called special safeguard clause. Susan Schwab, the US trade representative, said that the safeguard clause would damage the interests of the global farmers.

On Friday night, she said, we almost reached an agreement.

Although many countries are present, most negotiations are conducted among the teams of economic powers: the European Union, the United States, Australia, Japan, China, India and Brazil.

WTO officials say the future of the Doha round is uncertain now.

From a technical standpoint, the Doha round still has vitality.

Schwab said the United States maintained its commitment to complete the Doha round.

The aim of the Doha round is to open up the western food market and help people get rid of poverty.

On Monday, EU Trade Commissioner Mandelson said that the breakdown of the talks this week is nothing less than the effort to "destroy" the current round of trade rounds.

Trade experts warn that the current round of negotiations is failing (this is the eighth Summit), which may end the fate of the comprehensive multilateral trade agreement.