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WORLD trade ministers will tomorrow launch a three-day effort in Davos to breathe new life in deadlocked global free trade negotiations after critical talks in Hong Kong in December failed to secure a breakthrough.
After ministers at the December meeting only just managed to keep the present global trade round on the rails after days of intense and often bitter argument, this week’s dialogue in Davos will attempt to give new impetus to the process ahead of a self-imposed deadline for a deal in just over three months.
Negotiators from the 149 member countries of the World Trade Organisation now only have until April 30 to hammer out detailed formulas for lowering trade barriers. But hopes of a breakthrough in Davos are low, with divisions on the vexing issue of agricultural trade, as well as market access for industrial goods, as wide as ever.
Alan Johnson, Britain’s Trade Secretary, arrives at the World Economic Forum in the Swiss resort on Thursday. Sources close to Mr Johnson said that he hoped the talks could provide a chance for Britain to act as a bridge between the EU and the US, helping to close the gulf between the two bloc’s negotiating stance.
Mr Johnson is due to hold one-to-one talks with Rob Portman, the US Trade Representative, and will take part in informal discussions with key trade officials, including Pascal Lamy, Director-General of the WTO, and Peter Mandelson, the EU Trade Commissioner.
Mr Mandelson has warned other countries not to expect further cuts in Europe’s farm import tariffs without an offer of reciprocal cuts across all sectors, particularly in industrial goods and liberalizing their service industries.
"I cannot sell a deal in which Europe gives, but gets nothing in return," he said earlier this week. "That is not a negotiation, that is a capitulation. I won’t do it, and who would in my place?"
Mr Mandelson also insisted that the "key" to a breakthrough in the negotiations "no longer belongs in Europe".
Mr Portman, meanwhile, continue to side with India and Brazil, arguing that it is the EU’s refusal to make additional concessions that remains the greatest obstacle to progress in the talks.
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