Developing countries rule out Doha cuts
October 10, 2024 - Financial Times
by Alan Beattie
A coalition of developing countries has rejected big cuts in industrial goods tariffs in the troubled Doha round of trade talks, a move the US said could spell the end of the round.

In a paper submitted during the negotiations in Geneva, a grouping including Brazil, India, South Africa and Argentina, as well as all the African members of the World Trade Organisation, said they should not be asked to make bigger tariff reductions than rich countries.

The US and European Union said the proposal was a direct challenge to a draft text published in July by Don Stephenson, the Canadian WTO ambassador who chairs the industrial goods negotiations.

Mr Stephenson suggested ranges for cuts in goods tariffs that would have implied bigger reductions in protection for many developing countries, whose tariffs generally start higher than in rich countries.

Sean Spicer, spokesman for Susan Schwab, the US trade representative, said: "This proposal could signal the end of the Doha round. While the US and others have shown a clear commitment to moving towards a successful outcome, this text marks a significant move in the wrong direction."

The US has said it will require reductions in goods tariffs in return for offers to reduce its farm subsidies.

While Brussels has also argued that Washington needs to do more to cut farm support, it has concurred that the big emerging market countries need to open their goods markets.

Peter Power, spokesman for EU trade commissioner Peter Mandelson, said: "A text has already been tabled by the chair . . . Alternative papers are not needed, and we await others at the table to undertake the necessary negotiations."

Mr Power said it was difficult to reconcile the developing countries' proposal with Mr Stephenson's.

The ambassadors of Brazil, India and South Africa, which led the protest, could not be reached for comment.