World Trade talks collapse
The World Trade talks in Cancun have collapsed after African countries left the negotiating table.
The four days of talks, held in Mexico, reached deadlock over a new global deal on foreign investment and competition and trade policy.
The talks were divided by disagreement between developing and developed nations. Developing countries were insisting farm subsidies in Europe and the US are ended but the latter refused, claiming that to do so would bankrupt many of their farmers.
The talks saw the coming together of a new group of militant developing countries led by Brazil, India and China. They have joined forces to challenge the power of the richer western countries and Japan.
The Kenyan delegation left the talks at midday, blaming the EU for insisting on talks on the so-called Singapore issues. These aim to simplify cross-border traffic and increase competition and market access for multinationals, but the developing countries say that they are not ready for them yet.
Kenyan delegate George Odour Ongwen explained: ‘The differences were very wide, and it was impossible to close the gap.’
US trade representative Robert Zoellick stated: ‘Whether developed or developing, there were “can do” and “can’t do” countries here. The rhetoric of the “won’t do” over whelmed the concerted efforts of the “can do”. “Won’t do” led to impasse.’
He added that due to the breakdown in the talks the US would redouble its efforts to reach bilateral trade deals with favoured nations.
