MercoPress. South Atlantic News Agency

WTO OMC Ends with Hong Declaration

The Sixth Ministerial Conference of the World Trade Organization (WTO) concluded Sunday with a Hong Kong Ministerial Declaration.

After more than 100 hours' harsh negotiations, the global trade body's 149 members reached an agreement on eliminating all forms of farm export subsidies by the end of 2013.

Despite the long hours and hard work, "it was worth it," WTO Director-General Pascal Lamy told a press conference late in the evening of the final day. "We have managed to put the Round back on track after a period of hibernation.

Hong Kong's Commerce, Industry and Technology Secretary John Tsang, who chaired the conference, outlined the achievements in the declaration:

? "We have secured an end date for all export subsidies in agriculture, even if it is not in a form to everybody's liking. ? "We have an agreement on cotton. ? "We have a very solid duty-free, quota-free access for the 32 least-developed country members. ? "In agriculture and NAMA (non-agricultural market access), we have fleshed out a significant framework for full modalities. ? "And in services, we now have an agreed text that points positively to the way forward."

The declaration was agreed after several days of meetings late into the night, the last two continuing to the morning. "It's been a hard day's night. And I've been working like a dog," Secretary Tsang said, quoting John Lennon and Paul McCartney.

With the 44-page document now agreed, members face intense pressure in the new year to complete "full modalities" in agriculture and non-agricultural market access by the new deadline they have set themselves, 30 April 2006.

Compared to the draft forwarded to Hong Kong from Geneva, a number of issues have been settled or partly settled. The most straightforward is the agreement to end export subsidies in agriculture by 2013, but this was only agreed at the last minute, and members paid tribute to the European Union which had the greatest difficulty on this issue.

The declaration makes clear that the agreed date is conditional. Loopholes have to be plugged to avoid hidden export subsidies in credit, food aid and the sales of exporting state enterprises.

For cotton the elimination is accelerated to the end of 2006. In addition, cotton exports from least-developed countries will be allowed into developed countries without duty or quotas from the start of the period for implementing the new agriculture agreement.

Ministers have also agreed to aim to cut trade-distorting domestic subsidies on cotton by more than would normally apply under the new agreement, and to do so more quickly.

The two sides negotiating this difficult subject paid tribute to each other for what they described as the spirit of compromise: United States and the four countries pushing for an agreement on cotton (Bali, Burkina Faso, Chad and Mali).

A number of other details have been agreed in agriculture, non-agricultural market access and services.