End to WTO logjam in sight

Five core members of the World Trade Organisation (WTO) ended hours of hard bargaining by agreeing to principles that could open the way to a deal on a pact by the full membership, a leading negotiator said on Thursday.

"It brings the possibility of an agreement (of the full membership) nearer," the negotiator, who had been involved in the talks, told Reuters.

The NG-5 member countries "" the United States, the European Union, Australia, India and Brazil, are considered to represent a wide range of trade interests within the 147-member organisation and their agreement on a deal is crucial for any progress to liberalise global trade and boost the world's economy.

The WTO has set itself until midnight on Friday to finalise a draft agreement on a framework for negotiations in four main areas "" farm and industrial goods, services and a new customs' code "" to put its troubled Doha Round of free trade negotiations back on track.

A revised version of the draft tabled on July 16, is expected to be released by the chairman of the WTO general council by July 29. Trade officials say that failure to agree on a draft framework could postpone further progress on liberalising trade, with its promise of a multi-billion-dollar oost to the world economy by a few years.

Developing countries insist that the first draft issued by the mediators on July 16 ignored many of their basic concerns, while some richer nations "" including Japan and Switzerland "" say its provisions for lowering tariff barriers would hit farmers.

India has been among the strongest votaries for revising the draft. Commerce and Industry Minister Kamal Nath had in his interactions pointed out that the draft's definition of sensitive products for the EU amounted to a carve-out that effectively blocked market access. India wants this flaw to be redefined since this would be detrimental to developing countries.

A number of other members, including Switzerland, are however suspicious at the leading role assumed by the NG-5 and have warned that they would not be railroaded into anything just because the big trading powers back it.

Officially, both the United States and the European Union were guarded in their comments as the 'Big Five' are anxious not to be seen as dictating any final WTO decision.

"We believe that we have provided (New Zealand ambassador Tim) Groser with political guidance," said EU spokesman in Geneva Fabian Delcros, referring to the diplomat who is mediating the farm talks and who sat in on the session.

Meanwhile the G-33, an alliance of 42 developing countries has submitted a joint proposal calling for a revised agreement in agriculture which highlights their concerns regarding special products (SP) and special safeguard mechanisms.

The alliance has sought that SP should be a stand alone provision and developing countries should be able to decide themselves a percentage of tariff lines to be considered as SP. In addition to this, there should be no tariff reduction commitment for all SP and products considered as SP must also have access to SSM.