WTO members tussle over industry proposals

Rich and poor countries clashed about whether new proposals to free up trade in industrial goods did enough to open markets or help developing countries.

A meeting of World Trade Organisation (WTO) members to review the proposals showed poor countries are determined to exact a price in terms of how much they open their markets for manufactures to match the special treatment rich countries are seeking in agriculture.

US and European speakers echoed concerns also raised by their business lobbies that the new proposals did not go far enough to prise open developing country markets, and could allow entire sectors to be excluded from tariff cuts.

US ambassador to the WTO Peter Allgeier said the industry talks known as NAMA seemed to be about "non-additional market access", not their official designation of "non-agricultural market access", according to a participant in the meeting.

The industry proposals, together with a similar text for agriculture, were issued as a blueprint for a deal in the WTO's Doha round to free up world trade, now in its seventh year of negotiations after a series of missed deadlines.

The Doha talks now face a crucial few weeks, possibly culminating in a meeting of ministers, in a drive to wrap up the outlines of an accord by the end of 2008.

Both Brazil and India stressed in Tuesday's meeting that the Doha round had a development mandate, meaning poor countries should have to make smaller contributions than rich ones under the principle of "less than full reciprocity".

Putting a brighter spin on the proposals - and with an eye to angry European businesses and unions - EU trade chief Peter Mandelson said in Brussels that the new industry proposals could result in an acceptable final deal.

"Within the ranges provided by the text, the EU can secure some new market access in key markets in China, Asia and Latin America," he told a European Parliament committee.

At the heart of the proposals are revised coefficients that set the percentage ceiling for new tariffs under a formula.