August, 2004 - Nr. 8
Leaders hail free trade deal
TWIG - German leaders have applauded a breakthrough agreement by the World Trade Organization on guidelines for a legally binding treaty to reduce tariffs and lower trade barriers in agriculture, manufactured goods and services.
The deal sends a positive signal for the world economy and should come as especially welcome news to developing nations that will profit from a commitment by richer countries to slash billion of dollars in trade-distorting farm subsidies, ministers said.
Economy Minister Wolfgang Clement said that the framework accord would revive confidence in the multilateral world trade system after poorer countries rejected calls for new trade rules last September, triggering the collapse of a ministerial meeting in Cancun, Mexico.
"The setback of Cancun has been overcome. A success for the Doha round is back within our grasp," the minister said, referring to the latest round in a series of negotiations that have gradually liberalized world trade over the past half century.
German Development Minister Heidemarie Wieczorek-Zeul said that the framework accord agreed after marathon talks in Switzerland last weekend would go a long way towards ensuring a fair deal for developing nations at the next ministerial round, in December, 2005, in Hong Kong.
"Breaking down trade barriers is an essential precondition for fighting poverty in developing countries," she said.
Germany had been a staunch proponent of moves to reinvigorate free-trade negotiations before the upcoming U.S. elections and the establishment of a new EU commission.
"This success strengthens the multilateral world trade
system and the free trade that Germany is especially dependent upon as an
export-oriented country," noted Economy Minister Clement.
Republished with permission from "The Week in Germany"
