Positive noises after OECD meeting

12.00pm - By KEVIN NORQUAY

PARIS - Positive noises over the prospects of a successful world trade round resounded in Paris today when the Organisation for Economic Co-operation and Development (OECD) wrapped up its two-day Ministerial Council meeting.

After chairing the meeting, Prime Minister Helen Clark said there was a will among OECD countries to have the Doha, Qatar, round of World Trade Organisation (WTO) talks succeed.

The round has so far been marked by in-fighting and missed deadlines, with European Union (EU) protection of its farmers with subsidies one of its vexed issues.

OECD countries are important to the trade round succeeding, as they make up 30 of the world's strongest economies - 146 countries are part of the WTO.

While the meeting did not have the power to negotiate trade agreements, it offered the chance for major trading nations to canvass holding up the Doha round.

There was general agreement that Doha offered a once in a lifetime opportunity to have a good trade round, Miss Clark said.

Trade ministers and officials will continue negotiations in Cancun, Mexico, in September.

"What came through the discussion was a very high level of commitment to ensuring that Cancun is a success," Miss Clark said.

"I also believe there was a lot of momentum around achieving an end to the round by the end of 2004."

Trade liberalisation in agriculture and global access to medical supplies had emerged as crucial issues, she said.

"One of the most critical areas is whether the EU Commission is going to be able to see through the reforms it has signalled it would like to make in agricultural policy in the union."

EU Trade Commissioner Pascal Lamy and Agriculture Commissioner Franz Fischler have advocated reform of the Common Agriculture Policy to phase out subsidies.

They face trouble convincing all the 15 EU member states to accept reform, with France - one of the most powerful EU countries - proving a stern obstacle.

Many representatives of developing world countries forcefully put their view that agriculture was central to the Doha Round succeeding, Miss Clark said.

"We hope that message was clearly heard by everyone sitting around, the (European) commission needs support to carry through where I believe it wants to go."

United States Trade Commissioner Bob Zoellick said if the EU could get its agricultural reforms through, it was much more likely the trade round would be a success.

The US was "totally devoted" to making Cancun work, he said.

World Trade Organisation Secretary-General Supachai Panitchpakdi told reporters he was "encouraged" by what he had heard in Paris.

"The members of the WTO made firm commitments to the level of ambition that has been mandated from the Doha commitment," he said.

"We see also the full commitment that is needed to achieve (that) in time."

"All in all I see positive signs coming out of this meeting and I hope and I urge the ministers involved to pass on the messages to their trade negotiators in Geneva."

Countries had said they were willing to be more flexible to sort things out before Cancun, to avoid overloading its work programme, he said.

Trade Negotiations Minister Jim Sutton was on the Trade Ministers' panel at the meeting.

As one of the world's leading agricultural exporters, New Zealand has plenty to gain from trade liberalisation in that sector.

It was only the second time a New Zealand prime minister has chaired the OECD ministerial meeting.

In her keynote address to the OECD forum yesterday, Miss Clark talked about the need for developed countries to spread the gains to those less fortunate.

She has pushed for trade liberalisation at every stop on her visit to Europe over the past week.

- NZPA