Egypt is heading regional efforts to get the multilateral trade negotiations which collapsed in Cancun back on track. Niveen Wahish reports Two months have passed since the World Trade Organisation's (WTO) ministerial conference ended without consensus in Cancun, Mexico. While the WTO's 146 member states reconsider their approach to the negotiations before they get together again at the senior officials' level for the General Council meeting on 15 December, Cairo last week spearheaded an effort aimed at restarting trade talks. In preparation for the December meeting and in an attempt to help negotiations gain momentum once again, 12 African trade ministers met in Cairo last weekend. The informal ministerial meeting included Benin, Botswana, Burkina Faso, Chad, Egypt, Kenya, Lesotho, Mali, Mauritius, Nigeria, Senegal and South Africa as well as the director general of the WTO and the trade commissioner of the Western African Economic and Monetary Union . Egyptian Minister of Trade Youssef Boutros- Ghali, who headed the event, speaking at a press conference following the two days of meetings said that the purpose of the conference was not to outline negotiating positions. He stressed that the African countries were reaffirming their commitment to the multilateral trading system and to all aspects of the Doha Development Agenda (DDA). "Africa, represented in these countries, wants to emphasise that it is not the obstacle to restarting negotiations. It is a driving force for these negotiations. It will take the lead in restarting these negotiations," Boutros-Ghali said. A statement issued by the ministers following the conference called on the WTO membership, particularly the major trading partners, to return to the negotiating table as soon as possible. The Cancun conference had reached a stalemate when developing countries refused calls from the EU, Japan and others, to widen negotiations to include what are known as the Singapore issues, namely trade and investment, trade and competition policy, transparency in government procurement and trade facilitation. Agriculture was also a contentious issue among negotiators. Developing countries demanded that the United States and the EU make greater concessions on agriculture and do more to cut subsidies, which they said distort world agricultural trade and hurt their economies. The Group of 21, formed shortly before the Cancun conference, called on rich countries to cut subsidies and allow for free trade in farm products. The 21 countries, which included Brazil, Egypt, India and China, represent half the world's population and two-thirds of its farmers. Support given to farmers by OECD countries is estimated at $300 billion. Another outspoken group at Cancun was a group of four African countries: Burkina Faso, Benin, Chad and Mali. They pressed for an end to cotton subsidies in rich countries and for compensation to cover economic losses caused by these subsidies. Subsidies given to cotton producers in the rich countries induce overproduction, pushing cotton prices down. The eagerness of the African countries which attended the Cairo meeting to gather support for the multilateral trade talks stems from vested self- interest. "We are for the multilateral trading system because it holds the interest of African countries, rather than bilateral or regional trade pacts," said Boutros-Ghali. In fact, the conference statement read: "the multilateral trading system remains the most transparent, predictable, secure and durable conduit to expand free and fair trade among nations." Since their onset, the DDA talks have been geared specifically to help poor countries. Minister Boutros-Ghali, speaking on behalf of the conference participants, said that the ministers have agreed that the draft declaration produced by Ambassador Carlos Perez del Castillo, chairman of the WTO's General Council, could be a basis for restarting negotiations. Yet, he said that it still requires substantial work. The statement also said that agriculture remains the main market access issue for Africa. The ministers also discussed the issues brought forward by the Group of 21 before and during Cancun. Many thought that this group had many issues in common with African countries. And that it could be an accepted advocate for the causes of African countries in agriculture. Egypt, South Africa and Nigeria, all present at the conference in Cairo, are members of the G21. The cotton issue had its place on the agenda of the Cairo meeting. "We discussed the importance it represents for several million African farmers, and the importance that African countries attach to finding a realistic implementable solution to that issue," said Boutros-Ghali. Aicha Agne Pouye, trade minister of Senegal, told Al-Ahram Weekly that this issue has to be carefully evaluated in terms of impact and need. "It is crucial to more than 20 million people," she said. The next thing is to put in place compensation and programmes to really help those African countries to survive. Because of the urgency of the cotton issue, she said, cotton must be dealt with separately and not become part of the negotiations on agriculture. But the initiative by the African participants in the Cairo meeting alone will not help negotiations once again get off the ground. In fact, since the failure in Cancun observers have feared that the stalled negotiations would hamper a targeted 31 December 2004 deadline to conclude the DDA talks. Nonetheless, Egypt, for its part, is making the effort. Similar consultations are expected to be held with Arab countries and other regional groups to induce them to endorse the multilateral trading system.
