Jakarta sees progress on trade talks ahead of WTO meet in Bali
Indonesia has a more optimistic outlook on the upcoming World Trade Organisation (WTO) meeting at year-end, with members giving signs of their positive attitude to Jakarta.
WTO members are still discussing draft agreements and proposals for the meeting, scheduled for December in Bali.
In their previous trip to ongoing preparatory talks in Geneva last month, Indonesian trade officials said the pace of the negotiations was still slower than expected, raising concerns of failure at the Bali meet.
But certain key members representing developed and developing countries had since shifted from their binary opposition to a more balanced view of interests, according to Trade Minister Gita Wirjawan.
Members, he said, had changed their attitude towards the proposal on public stockholding for agricultural output, submitted by the 46 developing countries, including Indonesia, under the G33 Group.
Gita, who will chair the Bali meeting, said he had met with fellow officials from member countries including the United States, India, Japan, China, Nepal and Pakistan, who were in Geneva for the fourth Global Review of Aid for Trade, from July 8 to July 10.
“Members mulled an interim solution for an agricultural package to bridge the gap of interests before reaching the final goal,” he said.
The proposal has been one of the key sticking points slowing the pace of ongoing talks.
The debate on the agriculture package focuses on a change in WTO rules on public stockholding proposed by the G33 Group, which is aiming to push up the limits for subsidised food stockpiles.
Under the proposed changes, members aim to raise “the external reference price”, which is regulated by the government of each country member, and also to raise purchases of food at such a price.
Developing countries consider the move necessary to help poor farmers while at the same time building public food reserves to help keep prices in check.
However, developed nations want the limit maintained, as they fear any change would go beyond ensuring food security and create market distortion.
Gita said the progress seen on the agriculture package would set a foundation to “walk the talk” on the trade facilitation draft deals, which highlight ways to ease customs procedures, enhance business transparency and simplify trade.
Trade facilitation and agricultural packages are major objectives for Indonesia at the Bali meeting, with concessions from least developed countries also on the table.
These three objectives are considered vital to the revival of the Doha Round trade talks, which have deadlocked since 2008, and to restoring confidence in the 159-member global commerce body.
“I believe if the deal on the agriculture package can be agreed, this will pave a way for smooth sailing on the trade facilitation deal,” Gita said.
Talks on the trade facilitation draft deal have progressed at a snail’s pace as developed and developing countries clashed over the way to help ease trade and on their obligations to achieve that aim.
According to Gita, members also agreed to continue the talks until November, with no firm deadline set.
