Lamy’s Big-7 plan leads to discontent among others

WTO director general Pascal Lamy’s decision to restrict the mini-ministerial negotiations to an exclusive group of seven countries, which includes India, US and the EU, has been strongly opposed by many members left out of the process.

GENEVA: A storm of discontent is brewing at the WTO headquarters on the banks of the peaceful lake Geneve. WTO director general Pascal Lamy���s decision to restrict the mini-ministerial negotiations to an exclusive group of seven countries, which includes India, US and the EU, has been strongly opposed by many members left out of the process.

Switzerland, Turkey, Indonesia, Argentina, Mauritius and Chinese Taipei were among the countries which have expressed ���frustration��� at being left out of the talks. In defence, the DG said it was important for the big players to narrow their differences first before the others could be involved.

In the regular morning meeting of the trade negotiations committee (TNC) ��� where the developments of the previous evenings��� exclusive ministerial meetings are reported to the entire WTO membership ��� a number of delegates on Thursday vociferously protested against the decision to carry on the crucial discussions on agriculture and industrial goods liberalisation only among a group of seven countries.

The idea behind the small group meeting was that the countries with the largest stake in the negotiations would try their hand at sorting out the contentious issues. When they appear close to a consensus, other countries too would be roped into the talks. Many excluded members are, however, not buying that logic.

���You called ministers to a negotiation to Geneva. You asked us to take time, to put our energy in the process, to negotiate. However, you changed at short hand the process and decided to work in one very small group only,��� Swiss federal councillor D Leuthard told Mr Lamy at the TNC. Switzerland, which was speaking on behalf of all G-10 countries, added that by doing so, the DG had put many ministers in the waiting room. ���This could create political problems for me at home because I am not able to defend fully the Swiss interests and many of the G-10 colleagues are in the same situation,��� he said.

The G-10 members have defensive interests in agriculture and are fighting against placing tariff caps or ceilings on farm products, achieving appropriate flexibilities in the number and treatment of sensitive products (products which developed countries can shield from high tariff cuts), as well as moderating the tariff cuts, particularly in the upper band (products with high tariffs). Only Japan out of the 10 G-10 countries is part of the exclusive group of seven, which also includes Australia, Brazil and China.
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