By Anne-France White - 29th January 2007
The Doha round of global trade talks is officially back on track after trade ministers from around the world agreed to new negotiations.
The breakthrough was achieved during the World Economic Forum in Davos, where 30 ministers told their officials to step up talks on a world trade deal.
Top negotiators for the US, the EU, Brazil and possibly other countries are now set to meet in Geneva on 29 January to discuss the talks.
The move is triggering hopes of a successful outcome for the Doha round of trade talks, which collapsed last July amid politically sensitive farm trade.
World leaders displayed an unusually optimistic mood about the talks during the Davos meeting, with EU trade commissioner Peter Mandelson saying that “Europe is ready to do what needs to be done”.
Mandelson said the EU would improve its offer to cut farm tariffs by an average of 39 per cent.
US trade negotiator Susan Schwab, meanwhile, said Washington would “do more” to cut farm subsidies.
British Prime Minister Tony Blair was also upbeat, declaring that a deal in the next few months is now “more likely than not”.
“Countries are moving closer together; there is a reignition of political energy and drive and an increased recognition of the dire consequences of failure,” he said.
A breakthrough will depend on a number of key concessions – including deeper US cuts to farm subsidies, lower farm tariffs in the EU, and lower industrial duties in developing countries.
But in spite of the world leaders’ optimism, there are still many hurdles to a successful trade deal.
France remains opposed to Mandelson’s proposal to reduce farm tariffs, and it is likely to be very difficult to bring Paris on board in the run-up to the French presidential elections in May.
The round could also be jeopardised if talks drag on past the 30 June expiry of US president George W. Bush’s fast-track powers to approve trade deals.
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