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  • Oct 26th, 2005
  • Comments Off on WTO meeting won’t be scrapped: Hong Kong
Hong Kong said on Tuesday a meeting of world trade ministers here in December will go ahead despite speculation that it may be cancelled because key members have been unable to agree on critical areas of a new global trade pact.

"This is purely speculation," Commerce Secretary John Tsang told reporters, referring to reports that the talks could be cancelled if Europe fails to come up with a viable offer on cutting farm tariffs.

"We are actively organising the meeting right now and I do not see any reason how this meeting could be postponed or delayed."

The United States warned on Monday that the Hong Kong meeting to hammer out a new world trade deal was in jeopardy unless Europe offers big reductions in farm tariffs, and the EU itself admitted talks were on a "knife-edge."

The developments stepped up pressure on France, which has tried to curb concessions offered by EU Trade Commissioner Peter Mandelson on agricultural reform.

A US trade official told Reuters that people involved in the negotiations were now looking at alternatives to the Hong Kong meeting in case Brussels failed to come up with a new offer in time.

Agriculture has taken center stage at the talks because many poor nations, dependent on farm exports, say they need a deal here first before opening their markets for other goods. The talks began in 2001 in Doha, Qatar.

Trade sources in Washington said they thought it unlikely that the Hong Kong ministerial could be called off at this stage, although memories of bitter failure in Cancun in 2003 remain fresh in people's minds.

One former US negotiator added: "I don't think any of the WTO key members want to see another Cancun. I can see Hong Kong becoming downgraded from a big ministerial meeting to one where they agree to finalise a farm deal maybe a month later."

Tsang said he expected to see a "substantive" offer from the European Union on Thursday. Core WTO countries are due to resume talks on Friday by telephone.

Copyright Reuters, 2005


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