[asia-apec 1709] WTO talks collapse after China stands firm on farm subsidies

[Aaron James]

in an earlier AP article:

Barshevsky urged new US trade rep Zoellick to avoid fast track negotiations 
and begin negotiations with Russia into the WTO. China's PNTR proof that 
fast track may not be neccesary. Bush likely to push ahead to create a FTAA 
ands striking separate agreements with Sing and Chile. Before leaving 
office, Clinton admin started neg w/ Chile and Sing, who agreed, along w/ 
Jordan in Oct, to deals to enforce current laws on labour and environ 
protection, despite op from key Republicans. EU resistance over GM foods 
and hormone induced beef and dairy last stop to WTO, now apparently China 
will add another barrier.


South China Morning Post


WTO talks collapse after China stands firm on farm subsidies
Jan 19 2001 10:19AM
PEGGY SITO
The latest round of talks in China's 14-year bid to join the World Trade 
Organization (WTO) has broken down in a wrangle over agricultural issues 
and market access to the services industry.
Analysts said divergence over the two issues could put China's expected 
admission later this year behind schedule.
WTO deputy secretary-general Paul-Henri Ravier said delegates at the talks 
in Geneva had tried to reach a "package deal" that would involve a 
compromise in five remaining contentious areas.
Agriculture and services were "the most important remaining sectors", Mr 
Ravier said, after chairing eight days of negotiations attended by 
delegates from 40 countries.
The other three disputed issues were technical barriers to trade, 
industrial policy and China's trading rights.
China insists its agriculture sector be allowed to adopt the same level of 
domestic support given to developing countries, which is 10% of total 
output value. Beijing currently subsidizes about 2%.
However, the United States and the Cairns Group -- comprising Australia, 
Canada, Argentina, New Zealand, Thailand and Chile -- says China should be 
treated as a developed country, which would allow it subsidies of up to 5%.
On the services sector, the US and other WTO members were still in dispute 
over how freely foreign insurance companies could operate in China.
Long Yongtu -- China's deputy trade minister, who led the delegation in the 
talks -- said China needed to be able to support its 900 million farmers, 
describing demands by some WTO members as "too much".
"If you bind our hands not to support our poor farmers in the countryside, 
that's too much, nobody would agree with that," said Mr Long.
China had made concessions in agricultural negotiations on market access, 
including a commitment to cutting tariffs on agricultural products and 
agreeing not to introduce export subsidies that would distort trade, Mr 
Long said.
However, Mr Ravier said members saw "very clearly the shape of the final 
package".
"I feel that none of the outstanding problems are insurmountable," he said.
A new round of talks is expected late next month or in early March.
HSBC China Services research manager Benny Chiu Ling-bun said it was 
difficult to predict when China would join the WTO but that a short-term 
delay would not have a negative effect on China's fundamentals as the 
country was paving the way to further opening its markets independently of 
the WTO.
Copyright © 2000 South China Morning Post Publishers Ltd. All Rights Reserved.