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New WTO round may be question of size

By CHRISTOPHER WHITE

BRUSSELS, Nov. 1 (UPI) -- Small countries could combine to prevent a new world trade round if they do not win concessions to protect their economies, a spokesman for the Eastern Caribbean said Thursday.

The comments came at the close of the 77-nation EU-ACP Joint Assembly in Brussels.

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The meeting unanimously approved a resolution declaring war on terrorism "whenever and wherever it is found," and went on to declare that action against terrorists should be targeted to avoid injury to civilians. Those attending included Sudan and other African and Asian Muslim countries.

The unity of the 77 plus one -- Cuba is an official observer -- then ended.

The meeting failed to agree on a resolution condemning the government of President Robert Mugabe of Zimbabwe after the African, Caribbean and Pacific delegates forced a split vote, voting 33 to 17 against it while the EU under the weighted voting system voted in favor, 37 to 2.

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The concern of the developing countries that make up the ACP organization of largely former British and French colonies could become stronger at the forthcoming World Trade meeting in Doha, Qatar.

"The African countries have a well-defined position which is not enthusiastic about a new round of trade negotiations, but opposition is much stronger in the Caribbean and among the Pacific countries," said Edwin Laurent, the ambassador to the European Union representing the embassies of the eastern Caribbean states.

"The small developing countries are afraid that a new round will lead to the destruction of their agriculture and other industries, and they want protection," Laurent said.

"We, as a group, are not happy with what is being proposed at Doha. Our position under the WTO Treaty is declining. The decade of the '90s witnessed the decimation of our trade as developing countries and that includes actual volumes that have been in decline and the principal reason for this has been the impact of globalization."

Making a case for special protection, he added, "If there is to be a new round, there should be some genuine commitment to addressing the imbalances and this should be done with imagination and be proactive.

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"There should be, for example, the ability to continue with preferential trade, and trade rules should be interpreted liberally for small countries. One of our proposals is for a grace period for fiscal incentives to industry, otherwise the impact of a new trade round will be to retard the industrialization of developing countries."

Acknowledging that more advanced developing countries such as Mexico and Thailand do not always show real understanding for their smaller neighbors, Laurent said he foresees that the small countries will be "uncooperative" at Doha if they do not see their problems recognized. "It is my view that there could be sufficient unity to block a new round," he said.

British MEP John Corrie -- the EU joint president of the EU-ACP Joint Assembly, a twice-yearly parliamentary session -- disagrees. He said at the end of Thursday's meeting: "It is good to see unanimity on the war against terrorism but there will be no such unity among the small states at Doha.

"One great worry that the small countries have is there lack of representation within the organization in Geneva but the EU is addressing that by paying for a multinational embassy.

"Their principal worry is that globalization will destroy their agriculture, but they will be picked off one by one by promises from the industrialized countries at Doha. There are ways of building in reassurances by way of derogations, and I predict that the threats will come to nothing. There will be a new trade round."

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