2006 Press Releases

DOHA round and the G-8

July 25, 2006

The United States went to Geneva prepared to cut a good deal, but the G-8 mandate for increased market access has not been met. Following the commitment of the G-8 Leaders (plus the 7 invited developing countries: Brazil, China, South Africa, India, Congo, Mexico and Kazakhstan) at St. Petersburg, we hoped others would join us in bringing the necessary flexibility to move these negotiations into their final stage.

Not only did the EU fail to come forward with any new market access beyond their pledge to "approach the G-20" with a 48% cut and loopholes, but they are also criticizing proposed US cuts in domestic subsidies when the EU spends three times what the US does in trade distorting support.

The US is already well ahead of other countries on providing market access for agriculture products as evidenced by an US average tariff on agricultural products of 12% compared to EU's average of 24% and WTO members' average of 62%.

To date we have not seen such offers. Moreover, many Members are continuing to insist on exclusions for sensitive products, special products, special safeguards - real "loopholes" that would undermine even the tariff cuts that ostensibly are being offered. The layers of loopholes revealed over the weekend would result in even less markets access on the table than even first originally thought.

Examples:

• Upon studying the EU's loophole offer on beef it became clear that they were offering to allow just 160,000 tons to the whole world.

• India's proposed loopholes would exempt its market from imports of between 95-98% of agricultural products. Any developing country, whether it is Brazil or China could take advantage of this loophole.

• The U.S. played a critical role in launching the Doha Round, in getting it back on track following the Cancun Ministerial, in moving it forward last October with our ambitious agricultural proposal, and in sustaining that movement at the Hong Kong Ministerial.

We remain committed to achieving this objective and will continue to pursue an agreement in agriculture, manufacturing and services that will open new markets for all Members of the WTO.

In the days and weeks ahead, Ambassador Schwab, Secretary Johanns and others will be actively engaging and reaching out to other nations to search for ways forward in meeting the promise of the Doha Round.