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U.S. hopeful of some progress at Davos

By DONNA BORAK, UPI Business Correspondent

WASHINGTON, Jan. 20 (UPI) -- As the world's top political and business leaders prepare to head to Davos for next week's economic summit in the Swiss Alps, negotiators are hoping to find the "right mix" to make progress on stalled global trade talks.

Trade ministers from roughly 30 key countries including the United States, Europe, India, Japan and Brazil will hold sidebar meetings at this year's World Economic Forum in order to assess progress made on the so-called Doha round and address outstanding remaining issues, including agricultural market access.

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While both the United States and head of the World Trade Organization Pascal Lamy have been quick to emphasis that meetings held during the five-day talks will not "resolve issues," they say the meeting will offer a chance for ministers to exchange views on how to move past sticking points like agricultural market access, industrial tariffs and services.

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"Mini-ministerials like this are not official WTO meetings so nothing can be agreed," said Lamy, Xinhua, China's state-run news agency reported. "But there is an opportunity for ministers representing a wide variety of positions to exchange views on how we can move forward. Given the timing of this meeting it might be useful to review the timetable for 2006 which was agreed in Hong Kong."

The United States on Friday outlined its top priorities at the upcoming meeting saying it would be seeking ministers to reaffirm dates and make "some incremental progress" on key remaining issues including agricultural market access, industrial and services negotiations, as well as, to demonstrate to developing countries their stake at these talks.

Ministers from 150 countries left Hong Kong last December reaching limited progress on market access in agricultural negotiations, however trade chiefs agreed to reconvene by April 30 to reach agreement on "full negotiating modalities" in order to complete talks by the end of 2006.

The United States has tried to remain optimistic that an ambitious outcome can be attained through the Doha round -- arguing that a successful outcome could move "the needle point" significantly to help invigorate the global economy. However, the U.S. top trade chief, Rob Portman expressed concerns on Friday saying unless other countries agreed to make further offers on market access Doha may end up a watered down agreement.

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"The reality is that until we can agree on a formula that reduces tariffs globally we cannot meet this Doha promise for development," Portman, U.S. Trade Representative, told reporters in Washington. "In order to keep momentum post-Hong Kong, the European Union must be willing to move."

The European Union has continued to show reticence in making any further offers on market access in its agricultural proposal. Instead, it has called on the United States to put pressure on leaders of the Group of 20 developing nations - India and Brazil - to force its hand into making revised offers on their industrial and services market access proposal.

In his first speech since the Hong Kong ministerial, Peter Mandelson blamed the G-20 for failing to make concessions on non-agricultural market access and services. The EU trade chief warned that without offers by India and Brazil, Europe would settle for "a minimalist outcome."

Mandelson said the 25-member bloc would be willing to let Doha negotiation fails, rather than "pay for a round with nothing new on industrial market access, services, geographical indications, or the other rules that lend strength to the multilateral way of managing out international affairs."

Washington has acknowledged that Brussels faces sensitive political issues from certain members states like France, but said it must maintain its commitment under the July 2004 Framework to substantially improve market access, a key U.S. demand.

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"They should move together," said Portman, urging the European Union to advance its agricultural proposal to gain more market access and emerging developing countries like India and Brazil to move on industrial tariffs and services.

"At this point, where we are, unless the EU steps forward on agriculture, emerging developing countries including India and Brazil and others will not step forward on industrial tariffs and services, and the United States, frankly will not be able to deliver on its proposal regarding subsidies with the conditionality expressed in our agreement," said Portman.

"Time is running short. We cannot let this opportunity pass," said Portman.

Earlier this week, Japan's agriculture minister said that Toyko may table an farm proposal in order to reach agreement on stalled negotiations.

Shoichi Nakagawa said Wednesday Japan would offer a "trump card" in order to make progress on stalled talks before the April 30 deadline. Japan's agriculture minister did not explain what offer Tokyo would table by the deadline or whether it would agree to any concessions. However, there is some speculation that Tokyo may move to lower barriers to its farm imports.

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