Wto Draft May Be Blocked By Us Over Labour

Renato Ruggiero, WTO director general, told WTO ambassadors on Saturday that there was no consensus among member countries to include wording on labour standards in the declaration.

Developing countries have bitterly opposed moves by Washington, the European Union and Norway to discuss the links between trade and worker rights at the ministerial meeting in Singapore, fearing it could pave the way for trade measures to curb their exports.

But Booth Gardner, US ambassador to the WTO, told trade diplomats that Washington might not be able to agree other aspects of the declaration if labour standards were excluded.

The stand-off seems certain to delay agreement on the draft text beyond the November 7 deadline that WTO members have set themselves and heightens the risk of a North-South political row in Singapore.

 

However, in a concession to the US, the draft text of the declaration includes a commitment to negotiate an accord on transparency in government procurement which Washington says will help curb corruption.

It also calls for work to begin on investment and competition policy, both issues pushed strongly by the EU. Several developing countries remain opposed to any new subjects on future WTO agendas.

On Saturday, eight developing countries led by Indonesia, including India, Malaysia and Egypt, voiced detailed objections to the investment proposal, which they say is premature.