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Suspension of trade talks 'a setback'

By Dai Yan (China Daily)
Updated: 2006-07-26 14:52

They can only resume when progress can be made, which in turn will require changes in entrenched positions, he said. The suspension will apply to all negotiating groups.

EU Trade Commissioner Peter Mandelson later accused the United States of "stonewalling" by refusing to offer deeper cuts in US trade-distorting domestic farm subsidies, which total about US$20 billion annually.

Brazil, India and Japan joined in the criticism after the meeting failed to resolve long-standing differences over how far to cut farm subsidies and tariffs.

But Washington responded saying it hopes the EU's "blamesmanship" would not jeopardize the "few chances we have left" for reviving the talks.

Li Zhongzhou, a WTO expert, said the ongoing Doha talks were largely blocked by disagreements over agricultural market access, reduction of agricultural subsidies, and industrial trade.

To make breakthroughs, he said, the United States and the European Union should offer to substantially reduce domestic subsidies and import tariffs. China believes special treatment  should be given to developing countries to encourage them to continue with negotiations, he said.

The suspension of the talks is expected to lead to the further rise of bilateralism around the globe, he added.