MercoPress. South Atlantic News Agency

Mercosur against extending “Peace Clause”

Mercosur will not accept an extension of the World Trade Organization, WTO, “Peace Clause” which expires next December 31 and impedes taking countries that subsidize agriculture before international tribunals.

"Argentina particularly, and Mercosur have decided not to extend the "Peace Clause", and this will be one of the main four topics to consider with the Latinamerican Foreign Affairs ministers from the G 22 this coming Friday", said Argentine Economic Policies Secretary Martin Redrado.

The negative vote of only one WTO member is enough to prevent the extension of the clause according to a 1994 decision of the WTO Uruguay Round.

This means that as of December 31 countries that subsidize agriculture and/or farm exports can be taken to international tribunals.

This Friday delegates from Egypt, South Africa, India and China are also expected in Buenos Aires to join the G 22 strategy deliberations for the coming WTO meeting next December in Geneva.

"All WTO rulings must be honoured and therefore countries that subsidize agriculture could be forced to dismantle this structure", said Mr. Redrado.

The agenda for Friday includes an assessment of the recent failed WTO held in Cancún, Mexico, and the strategies to follow with the G 22 in Geneva.

However Mr. Redrado said the meeting "is not against anybody, but rather an effort in the search of understandings".

The other issue particularly sensitive will be the assessment of Cancun's impact regarding ongoing negotiations for regional agreements such as, "the US sponsored Free Trade Association of the Americas".

"Argentina's message is constructive. Cancún failed but we want to insist in looking for channels that will help reach new consensus, so trade negotiations can progress", added Mr. Redrado who also anticipated a "Buenos Aires Declaration" on the issue this Friday.

"Argentina will insist with multilateralism but we also have seven scenarios that we have targeted to increase our foreign sales and trade".

The G 22 was created "in conjunction with countries that feel the necessity to fight agriculture subsidies" in the framework of a "very strong position regarding access to industrialized countries markets", stressed Mr. Redrado adding that Cancun was positive in so far it brought countries together with the purpose of "strengthening multilateral policies".

United States has been particularly critical of Brazil, and to lesser extent of Argentina, and their roles in the G 22.

Ross Wilson US Deputy Trade Representative said that most nations in the Western Hemisphere prefer a wide, open agreement, "instead of the more limited focus proposed by Brazil".

Mr. Wilson also criticized Brazil for wanting discussions on "services, investment and government purchases" to be addressed in the framework of WTO, a position that "is not entirely consented among Mercosur members".

The US official was referring to Uruguay and Paraguay's lukewarm support of the strong Brazilian stance. Both countries are demanding special concessions from their more powerful partners, Brazil and Argentina, in Mercosur.