President urges end to trade imbalances

The Jakarta Post ,  Jakarta   |  Wed, 03/21/2007 4:16 PM  |  Business

Andi Haswidi and Urip Hudiono, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono kicked off the G-33 meeting here Tuesday evening by urging the grouping of 46 developing countries to unite to help rectify imbalances in the world's trade regime, which he said were inflicted in part by the developed countries.

""Not only do the developed countries raise barriers to market access of farm products from the developing world, they also spend billions of dollar on subsidies.

""The result was distortion in the trade of agricultural products to the detriment of the most vulnerable segment of the population in the developing world,"" Yudhoyono said in his speech marking the opening of the meeting, which is aimed at reaffirming the stance of the G-33 countries within the context of the Doha Agenda.

The meeting, which ends on Wednesday, is also being attended by representatives of the G-20 countries, the G-10, the Least Developed Countries Group, and the African, Caribbean and Pacific groupings. Among the attendees are India's Commerce and Industry Minister Kamal Nath and Brazilian Foreign Minister Celso Amorim.

Yudhoyono's remarks referred to the major disagreement that has stalled the Doha negotiations and resulted in sharp divisions between two powerful groupings within the WTO -- the developed countries and the developing ones.

His statement appears designed to show that the developing nations will not compromise their interests in the next stage of the Doha Agenda negotiations, which only resumed a month ago.

""The imbalances in the global trade regime, particularly in agricultural commodities, must be rectified,"" Yudhoyono stressed.

The G-33, which Indonesia currently chairs, is seeking not only import tariff cuts from the developed countries, but also the introduction of measures to help protect domestic interests in certain products and industries.

The G-33, for instance, is demanding a 54 percent import tariff cut by developed countries and a 36 percent cut by developing countries.

Also, the G-33 has introduced the special products (SP) and special safeguard measures (SSM) proposals, which would require exemptions from tariff cuts for certain products, specific to each country, with the aim of protecting food security and promoting rural development in developing countries.

Separately, in a meeting with Yudhoyono earlier in the day, Minister Amorim highlighted the importance of unity among developing countries.

""It is very important that the developed countries, especially the U.S., the European Union, and Japan, see that we are all defending our interests, and, of course, that we are also committed to a successful conclusion of the negotiations.""

Brazil currently chairs the powerful G-20 grouping of major industrial nations, of which Indonesia is also a member.

Yudhoyono also talked by telephone last night to U.S. President George W. Bush, presidential spokesperson Dino Pati Jalal said, adding that both presidents had expressed the hope that the results of the G-33 meeting would help advance the WTO negotiations.

During previous negotiations, the issues of subsidies provided by the developed nations to their farmers and market access had resulted in the WTO negotiations ending in stalemate.

Trade Minister Mari Elka Pangestu had previously reported that the U.S. was currently only willing to reduce the value of its agricultural subsidies to US$20 billion, while the developing countries wanted the figure to be reduced to around $12 billion.

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