MercoPress. South Atlantic News Agency

IMF-WB appeal to rich countries

The International Monetary Fund, IMF, and the World Bank, WB, underscored to the international community the urgency of reaching an agreement in those areas currently been discussed in the framework of the World Trade Organization, WTO, but which remain considerably delayed.

The urgency of concrete progress toward multilateral trade liberalization under the Doha Round through the continued commitment of the international community, "is critical in supporting higher economic growth and poverty reduction, and enabling developing countries to participate more fully in the benefits of globalization", reads the final communiqué of the IMF-WB Development Committee convened in Washington with the participation of delegates from the 184 country members.

The Committee accordingly "calls on industrial, emerging and developing countries to play their part in renewed efforts to address obstacles to further progress in advance of the ministerial meeting of the World Trade Organization in Cancún next September". "Urgent progress is needed in a number of areas, including agriculture, where better market access and lower trade distorting subsidies are particularly important for developing countries".

WTO talks suffered a severe setback last March 31 when negotiators were unable to reach an agreement to reduce farm subsidies and tariffs, mainly following the European Union and Japan's irreducible position.

George Brown, United Kingdom Chancellor of the Exchequer and president of the International Monetary and Financial Committee, which advises the IMF, said that trade negotiations were also delayed in the pharmaceutical and services areas.

The Development Committee also warned that the international situation has worsened since the last meeting of September.

During the annual meeting the Brazilian delegate speaking for nine Latinamerican countries described the lack of political support for the WTO negotiations as a great "deception" and demanded a quick lifting of protectionist measures.

"Advancing decisively against growing protectionism and reducing distorting subsidies is a main responsibility for everybody, but particularly for industrialized countries", emphasized Brazilian Economy Minister Antonio Palocci, talking for Colombia, Ecuador, Panama, Guyana, Haiti, Dominica Republic, Surinam and Trinidad Tobago. Brazil is one of 24 members in the International Monetary and Financial Committee where all 184 country members are represented.

A great number of developing countries face "strong trade barriers in United States, Europe and Japan" which impede a fluid access of "more competitive" exports such as farm produce, textiles, footwear and steel stressed Mr. Palocci. The Brazilian Minister said it was the responsibility of the industrialized countries to make effective recovery measures and if the risks to economic expansion persist a reduction of interest rates will be needed.