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US official upbeat on Doha round

By Li Xiaokun (China Daily)
Updated: 2008-12-04 08:04

The top US agricultural official said on Wednesday that the Doha round of global trade talks may "see a successful completion" by the end of the year despite warnings from some US lawmakers not to rush into a deal.

Washington is willing to offer a reduction in its allowable level of subsidies, but only in return for increased market access for its exports, Ed Schafer told reporters in Beijing, where he arrived on Tuesday for the two-day Sino-US Strategic Economic Dialogue which begins today.

Lauding China's efforts in the global trade talks, he said: "We in the United States remain confident that we can see a successful completion to the Doha round this year."

During the APEC meeting last month in Peru, leaders pledged to reach an agreement this month on the outlines of a World Trade Organization pact that collapsed in July after seven years of negotiations.

Negotiations have now stretched from agricultural products into non-agricultural products, he said.

"Much progress has been made over the last two months with the help of China and Brazil."

Four US lawmakers on the Senate Finance Committee and House Ways and Means Committee on Tuesday issued a letter urging the outgoing Bush administration not to rush into a deal that could ultimately be rejected by the incoming Congress.

But Schafer said: "The issue of subsidies ... is a strong issue in these negotiations and the US is ready and willing to do its part to come to an agreement.

"If you look at the calendar, that only gives us about three more weeks. But we do remain confident."

Yesterday, World Trade Organization Director-General Pascal Lamy said a meeting of ministers was possible around Dec 13-15, but cautioned he had not yet decided whether negotiating positions were close enough to call a meeting.

July talks had stumbled as developing countries, led by India, sought a measure to safeguard their farmers from a surge in imports.

"Earlier in the year, the United States proposed a reduction in our allowable level of subsidies, but I make the point that should we come to the effort to reduce subsidies from the US standpoint, that it must come with new market access for our producers," Schafer said.

"If we reduce the safety net for our farmers, we can overcome that issue with increased opportunity for access for them to sell their products.

"It is our hope that, should these modalities get a reasonable movement toward agreement, (it) will lead to then calling a ministerial session to solve the final issues," he said.

Turning to food safety in China, Schafer said: "We see a very important commitment from the Chinese government to help develop systems to ensure food safety."

He added it was encouraging to see China increasingly employ a systematic approach over end product testing and include it in the draft food safety law; and the "US would like to share its experience in the process".

Schafer will join US Treasury Secretary Henry Paulson - scheduled to arrive in Beijing early this morning - who would lead 15 high-ranking US officials for the SED dialogue at the Diaoyutai Guest House.

Vice-Premier Wang Qishan will lead 27 Chinese officials of or above vice-ministerial level in the last SED meeting under the outgoing Bush administration, according to sources with the Foreign Ministry.