Wto Farm Talks In March

The World Trade Organisation (WTO) negotiations to further liberalise services and agriculture _ scheduled to begin at the end of February for the former and March 20 for the latter _ are expected to focus on reducing subsidies and cutting tariffs.

This has been agreed upon by the various member of the WTO at the last session of the general council.

The talks will take place in special negotiating sessions of the council for trade in services, the first of which will be held in the fourth week of February. The agriculture committee will hold similar special sessions, the first in the week beginning March 20.

The general council has also agreed to address the trade and developmental impact on developing countries during mandated reviews of WTO agreements including those on intellectual property rights (IPRs) and trade-related investment measures (TRIMs).

While both subjects have been difficult to negotiate in the past, it is expected that some agreements will be reached by early next year.

The negotiations on agriculture and services are required under current WTO rules. These talks will cover sectors accounting for about half of the world economy and about a quarter of international trade.

According to WTO figures, in 1998, out of about $6.7 trillion of world trade in goods and services, agriculture accounted for $0.5 trillion (over eight per cent), and services for $1.3 trillion (almost 20 per cent).

The objective is also to further liberalize trade in services and to continue the agricultural reform programme.

The present agreement for agriculture lasts six years (until the end of this year) for developed countries, and 10 years (to 2004) for developing nations. It includes reductions in export subsidies, trade-distorting domestic support, and import tariffs.

In services, new post-Uruguay round agreements were reached on telecommunications liberalization in February 1997, and financial services liberalisation in December 1997.

The new negotiations will take place in parallel with routine work in the services council and agriculture committee. This includes monitoring how the present agreements and commitments are being implemented.

Members have also started consultations on how to proceed with discussions on implementing a number of other present agreements _ including proposals to postpone deadlines for developing countries in certain areas such as intellectual property and investment measures _ and special concessions for products from least developed countries.

In services, the negotiations shall be directed to the reduction or elimination of the adverse effects on trade in services of measures as a means of providing effective market access.

It has been decided that "this process shall take place with a view to promoting the interests of all participants on a mutually advantageous basis and to securing an overall balance of rights and obligations."