HONG KONG, Dec. 20 (UPI) -- Despite European trade commissioner Peter Mandelson's warning last week that an aid package for least-developed countries may be in jeopardy, poor and developing nations emerged the victors of last week's trade talks in Hong Kong.
With a pledge by rich countries to increase trade capacity building, a deal to eliminate cotton export subsidies for West African countries by 2006 and a broader package on duty-free, quota-free access to least-developed countries, trade ministers from the developed world cited "modest, but not insignificant progress" made to meet the long-standing demands of poor countries.
Evident during last week's talks was an unbridled cooperation between rich and poor countries unseen in previous rounds like Cancun where developing countries were pegged as the culprits for stymieing progress in the so-called Doha round for refusing to lower trade barriers to sensitive and long-standing protective sectors.
"We've come a long way since Cancun and this week reflected unprecedented cooperation between developed and developing countries, among developing countries, and among developed countries," said Susan Schwab, deputy U.S. Trade Representative, on Sunday during a U.S. briefing. "We're talking about major blocks looking to provide substance."
Similar sentiments were echoed by head of the U.S. delegation, U.S. Trade Representative Rob Portman, at the close of the ministerial after 149 members of the World Trade Organization approved a draft text, saying he had observed cooperation between diverse groups of countries working to pursue "common objectives."
Even as unparalleled cooperation between North and South trading partners went unnoticed by trade ministers of the developed world, least-developed and advanced developing countries on Sunday were quick to accept credit for the limited progress made in Hong Kong to save Doha talks at the ministerial.
"The fact that we are able to show solidarity among developing countries all across the issues despite difficulties ... was absolutely fundamental to arriving to an agreement on the development package," Celso Amorim, Brazilian foreign minister and co-chair of the Group of 20 developing nations, told reporters Sunday.
In the first few days of global trade talks in Hong Kong, the world's poorest and developing nations banded together under one name, hoping to set a pro-development tone for the next several months of negotiations.
"Every march begins with a first step," said Amorim earlier last week, announcing that more than 100 members would for the first time hold consultations, hoping to reach commonalities on decisive issues of agricultural market access and services.
"This is going to be a test of how we are going to proceed in the next few months," Rachid Mohammed Rachid, coordinator of the African Union, forewarned Thursday.
Aware of their various differences and common interests, trade ministers from the world's smallest economies, least-developed countries, African, Pacific and Caribbean states, African Union, G-20, G-33 and the G-90 formed an informal alliance, a so-called G-110, hoping they could put development back into the Doha agenda and work out remaining unresolved issues among themselves, without the aid of the developed world.
"It's all on the table," said Dipak Patel, trade minister of Zambia and coordinator for the least-developed countries. "We all know what the demands have been. We are trying to move ahead. We want to see concrete deliverables."
While ministers were quick to admit their differing opinions on preference erosion and services all week, they were cemented on deal-breaker issues, including an end date for elimination of export subsides by 2010, duty-free, quota-free access for least-developed countries and reducing barriers to cotton.
"Something is happening here that didn't happen in Cancun," said Kamal Nath, Indian trade minister, last week. "This bonding between diverse interests and diverse sizes."
While critical work remains for trade ministers in the months ahead in addressing the issue of formulas, services and non-agricultural market access, it is clear that the No. 1 priority by ministers, to put development ahead of all other priorities, has, as Nath indicated, set a "tone" for future rounds of talks.
