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Lamy's comments raise hopes of trade talk progress

Signs of "flexibility" from the EU over sensitive trade issues will make it easier to re-launch a crucial round of WTO negotiations within a three-week deadline, developing countries said.

EU Trade Commissioner Pascal Lamy indicated on Wednesday he was ready to put aside discussions on such things as cross-border investment and competition policies -- long-supported by the 15-nation bloc -- to help galvanize the current round of talks aimed at liberalizing global trade.

These so-called Singapore issues had been widely blamed for stalling a WTO meeting of ministers, in Cancun, Mexico in September.

The EU wanted to extend the mandate of the WTO to embrace the four items -- which also include trade facilitation and government procurement -- while developing countries refused to consider them before progress was made on reducing farm subsidies in rich nations.

During a two-day visit to WTO headquarters in Geneva, Lamy said this gesture, which must still be accepted by the EU's member states, would offer proof of "flexibility" from the EU ahead of a key meeting on Dec. 15 aimed at re-launching the Doha Development Agenda.

The meeting is considered by many as the last chance for WTO member states to steer negotiations towards their scheduled conclusion at the end of next year.

Developing countries said they hoped this gesture by the Europeans would help to unblock the current impasse.

"I think this will lift one of the obstacles in the negotiations," said Burkina Faso's Ambassador to the WTO, Kadre Desire Ouedraogo, who said he was more optimistic about reaching an agreement next month.

"This gives us a chance to resolve the divergences that took place in Cancun," he said.

Negotiations in Mexico collapsed when bickering over the Singapore matter added to a more fundamental dispute about agriculture between rich and poor countries.

"Countries in the south will welcome such a decision by the EU favorably," predicted Omar Hilale, the WTO ambassador for Morocco, who met Lamy in Geneva on Wednesday during a meeting with the G90 -- grouping the African Union, the Africa-Caribbean-Pacific and least developed countries.

"The most important thing is that Lamy said the EU's priority is to re-launch the negotiations, whereas beforehand the Europeans had said they would wait for signals from other member states," Hilale said.

The EU must also convince the Group of 20 (G20) industrialized and developing countries, which include Brazil, India and China, of its new resolve after the two sides clashed in Cancun over farm subsidies.

Mexico, which is also a member of the G20, felt that Lamy's proposal was "a good sign, not only for G20 countries, but for all developing countries," according to its WTO ambassador Eduardo Perez-Motta.

"If that proposal is indeed put on the table, it would show that the EU are flexible and are showing their commitment to the Doha round without any doubt," he said.

Putting aside the Singapore issues would open the way to return to discussions on agriculture, Hilale said.

According to the Moroccan ambassador, Lamy said on Wednesday the EU was ready to reduce "practically to zero" subsidies on exports of certain products that have a particular interest to developing nations.

During a press conference here, Lamy said if the EU made concessions in one area it would likely ask for something new in another, such as lower tariffs on industrial products, which should be less problematic.
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