Signs of trade-off in WTO inner circle

Jim Sutton

Trade Negotiations Minister Jim Sutton says signs of compromise are in the air at the World Trade Organisation talks in Hong Kong.

Mr Sutton is privy to high-level negotiations at the talks because he is involved in so-called "Green Room" discussions.

That group of more than 20 ministers have met at all hours between the scheduled meetings, Mr Sutton said.

"The Green Room got down to serious business last night," he said.

"As expected we are not going to get a major breakthrough at this conference ... but what we are looking for now is to turn this conference into a platform from which we can launch a successful campaign to move on to the next stage and complete the negotiations in the coming year."

That was a "reasonable objective" and there had been "promising signs" it was obtainable, Mr Sutton said.

"You start to get some genuine negotiating going on, some genuine give and take.

"For the first time it was observable that some ministers of some countries were putting forward positions that were changed from their earlier positions. They are responding to emerging consensus, to the convergence that happens by subtle millimetres."

Mr Sutton said there was "some compromise in the air" but he was not permitted to reveal details.

"There is some sign we can go ahead, make some progress in those areas we can, recognise there are some areas [in which] there's going to be a little more maturing, a little more political pressure, before certain Governments can actually bite the bullet and change positions."

The inner-circle group discussed agriculture, non-agriculture market access, and development during an 11pm to 3am meeting.

The unusual hours ensured other scheduled meetings were not disrupted, thus avoiding resentment and conspiracy theories.

"It is quite a sensitive environment," said Mr Sutton. There was a "lot of competition" to a place in the group.

The WTO talks are in their third day. The Hong Kong meeting was initially intended to approve a draft trade treaty freeing up business in farm and industrial goods and services, known as the Doha Round.

That plan was abandoned because of differences between rich and poor nations - particularly the European Union's refusal to make further cuts in import tariffs for farm goods without offers of greater export access for its goods and services.

However, the 149 WTO nations still hope to reach a deal by the end of 2006.

The WTO had hoped for at least a duty-free and quota-free deal for the world's 49 poorest nations.

- NZPA