Pascal Lamy, director-general of the World Trade Organisation, on Friday said members of the world body would have to compromise on their individual ambition if the six-year-old Doha Development Round were to be successfully completed soon.
At a time when oil was nearing the $100-a-barrel mark, Lamy said discussions on energy have entered the Doha Round of talks. ?The new element in the on-going Doha Round is that energy is starting to have its specific place at the WTO. For example, we are negotiating a chapter on energy services,? he said.
In an online chat from Geneva, Lamy said, ?The question all members will be facing soon is whether or not they are all ready to compromise on all topics and at what level.? This, he said, would allow all to agree on the modalities for a global trade regime for agriculture and industrial goods?non-agricultural market access (Nama).
The issues at stake also include services, trade facilitation and environment related topics. ?I really hope this can be done as soon as possible,? he said.
Asked whether the demands of developing nations would be reflected in the upcoming revised text on Nama, he said the trick was to combine the right level of ambition that would depend on the size of cuts in bound tariffs, and specific flexibilities tailored to the needs of developing countries.
?Developed countries will have no flexibility and their tariff peaks will have to be erased. This is an important offensive for developing countries,? he added. India has already asked the US and EU to show flexibility on agriculture subsidy, saying it was a livelihood issue for the farmers of developing countries.
On the role of energy in the trade talks, Lamy said WTO rules already cover energy both as a product and as a service, energy related environmental goods such as filters and windmills. ?My sense is that the energy community wants this specificity to be developed in the future. They need to make sure their governments put this more at the centre of the WTO radar screen,? he said.
Lamy acknowledged that though high oil and gas prices could be good for the environment, ?They are also leading to an increase in the price of food, which is a becoming a big issue in many developing countries.?
On whether he saw any flexibility from the US on its ?trade-distorting? farm subsidies, Lamy said, ?The US is obviously a key member in agriculture negotiations and, like all other 151 members, we are looking at them to show their commitment to a successful outcome.?