Posted on 01/10/2006 7:43:06 AM PST by hedgetrimmer
WTO committed to ending agricultural subsidies, other trade barriers
Keeping Doha Alive
After more than four years of negotiations with no breakthrough on the toughest issues, and a failed ministerial meeting in Cancun, expectations for Hong Kong were low. The December meeting of the World Trade Organization in Hong Kong kept the Doha Development Agenda trade talks alive.
Progress was made as more than 150 nations gathered to give developing countries a further stake in the global trading system and move forward in efforts to break down barriers to the free flow of agricultural and manufactured goods and services.
We were able to set a date of 2013 for the end of agricultural export subsidies and agree to a number of development initiatives. Perhaps most important, there was a recognition among trade ministers that we cannot afford to miss this once-in-a-generation opportunity to energize the global trading system, create economic growth and lift millions of people out of poverty. The consensus that more open trade is an important development tool is stronger as a result of our commitments in Hong Kong.
At the same time, we have a lot of hard work ahead to ensure a successful outcome for the Doha Round by the end of next year. The United States will continue to play a leadership role.
In a United Nations speech this fall, President Bush laid out a bold vision for open trade to bring renewed economic growth, hope and prosperity to the developing world. We believe that expanded market access, particularly in agriculture, is the key to a final agreement. I feel even more strongly about that after consulting with trading partners in Hong Kong, particularly those from Africa, Asia and Latin America. As World Bank studies make clear, the biggest gains for developing countries will come from opening markets to their agricultural output. What is more, an agreement to make deep cuts in tariffs and open up quotas on agriculture goods will pave the way for success in the Doha Round's other goals for reducing trade-distorting agriculture subsidies, cutting tariffs on industrial goods and obtaining meaningful new openings for services. We need to redouble efforts across the board, but agriculture is the linchpin for the success of the Round.
One reason the United States is more optimistic after Hong Kong is the meeting helped give the developing countries, most particularly the least-developed countries, a bigger stake in the global trading system. This came through a series of trade measures to support development.
We formalized a landmark breakthrough in the rules governing intellectual property rights that balances the needs of protecting patent rights with delivering life-saving medicines to areas hardest hit by disease. This will be of great importance to countries struggling to cope with HIV/AIDS, malaria and other health crises.
In addition, nations reinforced their commitment to development with significant new pledges of so-called aid for trade. This will help create the legal, administrative and physical infrastructures needed to help developing countries participate fully in the market openings we hope to achieve in the Doha Round. The United States is proud to lead the world in providing such assistance, and as part of the Doha Round, we announced a doubling of our contributions over the next five years from the current level of roughly $1.3 billion a year to $2.7 billion annually.
Also, we committed to duty-free/quota-free treatment for goods from the world's poorest countries. The United States is already the most open market in the world to these products. In Hong Kong, all developed countries agreed to provide even more trade opportunities for the least-developed.
What is more, we set the stage for cutting costly and confusing customs procedures. This will help facilitate and reduce the costs of trading between developing nations and also help them attract foreign investment. Two years ago at the WTO talks in Cancun, this issue of trade facilitation was a major stumbling block. But in Hong Kong, thanks to the work of a diverse group of countries, we were able to record real progress.
In Hong Kong, I was struck by the cooperation among countries at different levels of development and from all parts of the world. The long-held notion of a world divided by rich countries and poor countries, or North and South, is beginning to be replaced by a system in which countries of diverse make-ups work together in pursuit of common objectives.
For example, in Hong Kong the United States worked in common purpose with countries from Zambia to Japan on development initiatives. We worked closely with the Group of 20 developing countries from Latin America, Asia and Africa on agricultural market access and setting a date for ending agricultural export subsidies. We were in common purpose with India and Chile on services and we worked closely with our trading partners in Europe and Korea on reducing industrial tariffs.
Coming out of Hong Kong, the importance of the rules-based multilateral trading system and the peaceful pursuit of expanded commerce were reaffirmed. But now the 150 members of the WTO must join together to make real progress in bridging the fundamental divisions in the Doha negotiations. It will take contributions from all members. Unless this can happen early in this new year, we risk missing a unique opportunity to enhance global economic growth and alleviate poverty.
Here is a list of the US's major trading partners, as provided by the Heritage Foundation -
Canada 23.2%
Mexico 13.5%
Japan 6.6%
UK 4.4%
China 4.2%
Germany 3.8%
Note no India, Burma, Vietnam or Dominician Republic. And again, you're confusing low wages with slavery.
Of course, you protectionist nuts will even say you can't compete with Canada. Pat Buchanan said so in his "Family Farm Bill of Rights" speech when he got worked up about cheap Canadian food. So we'll treat your statement about slavery as what it is - a red herring, and a lame excuse.
Ivan
Not knowing more detail than what you've provided I'd say that, under these circumstances, your company should absolutely exit the industry and allow the larger and more efficient operators to fill the void. The fact is, agriculture today is dominated by large co-op's with tremendous efficiencies. We've had to do this to remain competitive. Unfortunately, the welfare you defend is used by these co-op's to undercut small and medium sized producers and, eventually, drive them out of business or buy their operations.
the every day farmer; who, unlike other businesses, has minimal control over the prices paid for product, absolutely no ability to pass along increased input costs to the buyer
Please, the plight of the poor farmer is hardly going to earn any sympathy when the average family farm has a household income 17% higher than the national average and a cost of living that is 10%-40% lower than urban areas. Farms fail at only one-sixth the rate of non-farm businesses, and only 4.5 percent of farms have enough debt to be considered vulnerable to bankruptcy.
I guess it's easier to blame others though, isn't it?
..all while watching the "value-added" purchasers of his product raking in the millions...do get back to me.
So, you're in the food business. So am I. Maybe you can show me which of these value added food manufacturers makes extraordinary profits and exactly what those margins are. I ask because it's well known that the American food industry is highly competitive and generates lower, yet consistent, margins when compared to other industries. When comparing net revenue as a percentage of sales for all industries, food manufacturers rank well below the national average. Food retailing and distribution are even lower. So, who's making all those obscene profits?
please do tell which "crops" Americans are supposed to focus on...
If the government would just get out of the way and stop interfering, the markets would sort this question out in very short order.
Brazil and Burma don't figure as the major import trading partners of the United States. As the example I pointed out shows, the slavery issue you bring up is a red herring - you people don't even like imports from Canada if it doesn't suit you.
Ivan
I said SOME of the biggest "trading partners",and included concrete examples of countries using slave labor and human trafficking.
And even if some of these "trading partners" are not the biggest, a society with an abhorrance to slavery should not trade with them. But the WTO says we must or we will be violating their rules.
Trying to diminish the fact that globally,slavery is on the rise due to the fraudulently named "free trade" system won't fly.
This is actually what has been agreed.
It doesn't eliminate protectionism - it caps tariffs at certain levels, and turns agricultural quotas to tariffs.
Trying to diminish the fact that globally,slavery is on the rise due to the fraudulently named "free trade" system won't fly.
None of the articles you posted say that free trade has led to an increase in slavery. The nation that first proposed free trade, namely Britain, was also one of the first to eliminate it, and actively work to destroy it with the Royal Navy.
Ivan
Yes. She agrees that mental illness is a terrible thing and we are both praying you make a full and rapid recovery.
The words "psycho nutbag" spring to mind when it comes to you. I never said we'd achieved free trade. The process of taking barriers down is continuing. People like you stand in the way, in fact, you want to throw this in reverse. For reasons which I've posted, this is an extremely stupid and damaging point of view.
Ivan
OK, now I'm laughing at you. The American Revolution was fought over an important point - due to the costs of the Seven Years War, in which the British kicked the French out of North America and India, the British government demanded the American colonies pay taxes to pay off the debt associated with that war. If we had asked rather than demanded, it is likely that the United States would be British still. Instead, that provoked the saying, "No taxation without representation" - i.e., the Americans were not going to pay taxes to a body in which they had no say, namely Parliament.
Nothing to do with free trade. It was an important point of principle, regarding representative government and taxation. Your psychotic nonsense only serves to distract from a very important historical lesson. I hope your fellow Americans learn what an utter fruitcake you are by you erroneous interpretation.
Ivan
If you seriously think China is communist these days, you haven't heard of Deng Xioping's maxim, "To get rich is glorious". Secondly, as for the slavery - you have totally failed to prove a direct link between free trade and slavery. In fact, let's put it this way - if countries cannot participate in the world trading system, are marginalised and poor, they are more likely to have slavery or extremist governments: countries with outright slavery like Niger and Mauritania have no economy and little trade to speak of. Countries with truly operating communism like North Korea have policies you would like - Kim Il-Sung committed them to a policy called "juche", which means "self-reliance". They shut out the world. And look where it got them.
Ivan
We knew, based upon her previous erroneous interpretations. It's nice to know how her ignorance is recognized around the world.
Didn't the WTO whack him for saying that? LOL!!!
where education and improvement are the individual striving of every citizen
It's like McKinley is talking to you from the grave.
Why don't you explain to us what "multilateral trade" is.
AS for "free trade" link to slavery? When did the American people lose their right to NOT trade with a nation that engages in slavery? When the WTO was created.
If you don't know what it is, then you're not fit to comment on it.
AS for "free trade" link to slavery? When did the American people lose their right to NOT trade with a nation that engages in slavery? When the WTO was created.
I see you're one of those people who believe that economic sanctions actually work. So you're over there with the Democrats thinking we should have given sanctions on Iraq more time.
Do keep talking. We now know that you'll attach yourself to any outrageous proposition to avoid admitting your complete, total and utter ignorance.
Ivan
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