The anti-concentration proposal aims to severely restrict the flexibilities for developing countries in deciding which sensitive industrial products can be designated for reduced tariff cuts. The US, the EU, Japan and Canada insisted that there must be a trigger for determining which tariff lines in harmonised system (HS) classification will be eligible for the treatment of sensitive products.
During two rounds of talks at the US mission on Monday and Tuesday, sharp differences came to the fore over a range of problems in the latest non-agriculture market access (NAMA) draft text, particularly the anti-concentration provision as well as flexibilities for developing countries who are members of the customs union.
Besides, India, South Africa and Brazil have flatly opposed attempts by the US to convert the G-12 into a negotiating body, trade negotiators said, suggesting that the new group cannot be anything more than a consultative mechanism to share ideas.
Apart from the US, the G-12 bloc also includes India, China, the EU, Japan and Brazil, among others.
Meanwhile, World Trade Organisation (WTO) chief Pascal Lamy sought to know from the trade envoys of the US, the EU, Brazil and India about the progress at the G-12 meetings, sources told Business Standard.
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Apparently, the four countries offered their individual assessment on where things stood at this juncture, indicating that they are not expecting any progress soon.
Last week, EU trade commissioner Peter Mandelson told reporters in Paris that the G-12 meetings would be "a litmus text" for the progress or lack of it in the Doha trade negotiations. But new demands by the EU and the US are taking the G-12 meetings backwards, negotiators from developing countries said.
During the marathon meeting at the US mission, trade officials/envoys of the G-12 countries discussed only two issues relating to the flexibilities sought by South Africa for its Southern African Customs Union members and the anti-concentration proposal.
The so-called middle group countries