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Rich and poor skirmish over new world trade talks

Big powers and poor countries battled on Sunday over whether to call a new round of world trade talks, balancing a desire to boost the global economy with fears a deal will simply make the rich richer.

Under tight security following the September 11 attacks in America, ministers from more than 140 countries were seeking common ground at a World Trade Organisation meeting on areas as diverse as farming, drug patents and the environment.

Many poorer countries said they had yet to see the benefits -- including better market access -- from previous pacts to liberalise trade while most industrialised states were urging even freer commerce to fuel the world's staggering economy.

"We are beginning to wonder if all this talk of development is a completely empty exercise," said Federico Cuello Camilo of the Dominican Republic.

Japan, however, said it was keen for new trade negotiations as the world economy teeters from the attacks on New York and Washington.

"The September 11 incident has certainly strengthened our belief that the international economic community does require a new round," said Shinichi Kitajima, director-general for economic affairs at Japan's foreign ministry.

EXPANDING THE WTO

The WTO had one success on Saturday, admitting China and its 1.3 billion population into the trading club after 15 years of negotiations. Taiwan's entry was to be approved later on Sunday, increasing economic integration between the political rivals.

Ministers from the big powers -- the European Union and the United States among them -- as well as from developing countries that face major competition from cheaper Chinese goods hailed the move to bring in Beijing.

The United States said the move would be looked back on as a "decisive step" for the global economy, while Beijing's official Xinhua news agency said it would allow China "to join the mighty torrent of world economic development".

But US officials said they would closely monitor Chinese compliance with the WTO's complex rules.

China considers Taiwan a renegade province and has threatened to invade if Taipei declared independence.

To dodge the sensitive political issue, Taiwan will enter the WTO as the "separate customs territory" of Taiwan and its offshore islands of Penghu, Kinmen and Matsu.

DOWN TO THE ISSUES

Six working groups -- on agriculture, investment, the environment, intellectual property, rules and implementing previous agreements -- were set up on Saturday to hammer out compromises.

But initial closed-session skirmishes -- and formal speeches by ministers setting out their countries' stance -- gave little sign that any of the key players were ready to move off their starting positions.

"Right now, it's still a stand-off across the board," said one official following the first round of backstage exchanges in the Qatari capital.

WTO spokesman Keith Rockwell said it was "by no means certain" that the gaps could be bridged before the conference ended on Tuesday night.

Envoys from several countries said the time left seemed much too short to reach an agreed declaration that would set out a agenda for a round of talks to start next year.

Some least-developed countries with a per capita income of less than $1 a day say they want a "Development Agenda" of talks over the next few years that would focus on a route out of their grinding poverty.

But not all developing countries agree. Some Latin American countries see advantages in agreeing to set rules for foreign investment in order to attract more money into their economies.

The United States says it is aligned with the poorer countries in demanding that the 15-nation EU agree to set a time-frame for negotiating away its farm subsidy programme -- something bitterly opposed by France and others.

And Japan is lined up with Brazil and other emerging economies like India in insisting that Washington must agree to moderate its use of WTO anti-dumping rules in order to keep out cheap foreign goods like steel.

Another major dispute centres on drug patents, with poorer countries arguing that rules granting 20-year patents on pharmaceuticals should be eased to allow cheaper versions of the drugs to tackle public health crises such as AIDS.

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