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Next WTO chief eyes early farm, aid agreements

Concluding a new round of world trade talks by 2005 could depend on reaching early agreement on agriculture and new technical assistance programs for developing countries, the next head of the World Trade Organisation said on Tuesday.

WTO Director-General-designate Supachai Panitchpakdi told reporters there must be substantial progress in those two areas by the WTO's next meeting in Mexico in 2003 for the ambitious trade talks launched three months ago in Doha, Qatar to stand any chance of success.

"If we can reach a decent agreement on agriculture before we go to Mexico, if we can set up a really serious technical assistance program, and if we can also help to educate negotiators in developing countries, then will we have a successful round," Supachai said after a speech to a U.S. service industry meeting at the Commerce Department.

In a speech to the same group, US Deputy Trade Representative Peter Allgeier said the United States was "absolutely committed" to concluding the WTO talks by the January 1, 2005 target date. To keep on track, it favors holding the Mexico meeting in "the middle of 2003," rather than later in the year as some countries want, he said.

With seven months to go until he succeeds New Zealand's Mike Moore as the WTO chief, Supachai said he has already had initial discussions with Mexican Trade Minister Ernesto Derbez regarding preparations for the next ministerial.

At that meeting, WTO members will decide whether to proceed with negotiations on issues such as government procurement rules, competition policy and foreign direct investment rules, which poorer countries have been reluctant to take on because of the new commitments that could be required.

Instead, many developing countries view agriculture as the top item on the "Doha Development Agenda."

They want to be able to sell more of their farm goods in the United States and the European Union and want the elimination of agricultural export subsidies and other "trade-distorting" government farm measures.

Supachai said a "serious" technical assistance package should include trade-related programs to help poor countries develop new export businesses.

Many of the poorest countries did not see how they would benefit from the increased market access promised by the new negotiations because they produced few goods, he said.

Technical aid should help developing countries assess the impact of different negotiating outcomes, as well as the more accepted goal of helping them to improve their negotiating abilities on unfamiliar subjects, he said.

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