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12 January 2004

U.S. Trade Representative Calls for Energizing Global Trade Talks

In letter to trade ministers, Zoellick suggests scheduling ministerial in 2004

U.S. Trade Representative Robert Zoellick is calling on member countries of the World Trade Organization (WTO) to re-invigorate the WTO trade negotiations, which collapsed in September at the ministerial meeting in Cancun, Mexico.

In a letter sent to more than 140 WTO trade ministers Zoellick said the United States "does not want 2004 to be a lost year" for the negotiations, known as the Doha Development Agenda, and urged a "common sense" approach to unresolved trade issues, according to a news release published January 12 by the USTR's office.

The letter proposes appointing as chairman of the WTO General Council a member from a developing country even though under normal rotation the chair would go to a developed country this year. And it suggests scheduling the next ministers' meeting before the end of 2004.

Emphasizing the 2002 U.S. agriculture proposal and de-emphasizing the less ambitious 2003 joint U.S.-European Union proposal, Zoellick proposed eliminating agricultural export subsidies by some deadline to be determined and urged making substantial cuts in domestic farm supports. He said that both developed and developing countries must open their markets to farm products.

On manufactured goods, Zoellick urged pursuit of an ambitious but flexible tariff-cutting formula that would suit all WTO members as well as zero-tariff initiatives for specific sectors.

The U.S. trade representative called for greater progress on services negotiations and suggested that issues related to investment and competition policy be dropped from the agenda for the time being.

Following is the text of the USTR news release:

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Office of the United States Trade Representative
www.ustr.gov
January 12, 2004

A Common-Sense Approach to Advance the Doha Development Agenda

The U.S. does not want 2004 to be a lost year for the Doha Development Agenda of World Trade Organization (WTO) negotiations. U.S. Trade Representative Robert B. Zoellick has written to the WTO Ministers responsible for trade (over 140) to suggest a "common sense" approach to advancing negotiations this year.

Zoellick's letter offers some observations and suggestions and proposes a WTO Ministerial meeting before the end of this year in Hong Kong. Zoellick plans a round-the-world tour of key capitals in February to meet with Ministers, listen to ideas, and work for progress.

The letter suggests that WTO members should focus on the basics, especially the core market access topics of agriculture, goods and services.

Agriculture: The letter suggests that WTO Members agree to eliminate agricultural export subsidies by a date certain. In addition, Members should agree to substantially decrease and harmonize levels of trade-distorting domestic support, and seek a substantial increase in real market access opportunities both in developed and major developing economies. The letter notes that the U.S. stands by its 2002 proposal to set a goal of total elimination of trade-distorting subsidies and barriers to market access. The letter also suggests that domestic supports, export subsidies, and tariffs for cotton (including cotton textiles) be cut substantially as part of a comprehensive agreement.

Goods: The letter suggests Members pursue an ambitious tariff-cutting formula for manufactured goods that includes sufficient flexibility so that the methodology will work for all economies. In addition to the tariff-cutting formula, sectoral zero-tariff initiatives should be an integral part of the negotiations, and the letter suggests a "critical mass" approach be used to define participation in sectoral initiatives. The letter also notes that there appears to be consensus to tackle non-tariff trade barriers in the Doha negotiations.

Services: The letter suggests that Ministers press for meaningful services offers from a majority of WTO members, as well as technical assistance to help developing countries present offers.

With regard to the "Singapore Issues", the letter suggests proceeding with negotiations on trade facilitation, further exploring interest in negotiations on transparency in government procurement, and dropping -- or developing a plan of further study for -- the issues of competition and investment.

The letter suggests that WTO Members appoint a new chair of the WTO General Council from a developing country, even though the rotating Chair for this year would normally be chosen from a developed nation. To press discussions forward, additional meetings of Geneva- and capital-based senior officials would seek to develop frameworks for negotiations by mid-year, with a full WTO Ministerial before the end of this year. Hong Kong has already offered to host the next WTO Ministerial meeting.

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)