EU, Japan agree to work to get WTO on track

BRUSSELS, Jan 12: The European Union and Japan agreed yesterday to work together to get derailed global trade negotiations back on track as soon as possible, reports Reuters.

In a joint statement, released after high-level talks here between Japanese ministers and members of the EU's Executive Commission, both sides said the early launch of a new round of talks should be the World Trade Organisation's (WTO) priority.

"They agreed to continue their close cooperation to get the process back on track as soon as possible," the statement said.

A WTO conference in Seattle last month failed to launch a new trade round which had been called for by the EU, Japan, the United States and some other nations.

The EU and Japan were closely aligned in Seattle in defending their agricultural systems against attack from the US and other major food exporters. Developing countries resisted industrial nations' calls for core labour standards to be discussed in the WTO.

The EU and Japan stuck to their demands on Tuesday for the new round to be comprehensive, including agriculture, services, market access, anti-dumping and rules on investment and competition.

WTO Director-General Mike Moore is trying to get global trade talks moving and the US remains hopeful of reaching agreement this year on restarting negotiations. But some diplomats have said this could prove difficult in a US presidential election year when political sensitivities are high.

A commission spokesman said a new round could come before the election in November. "We wouldn't rule out a launch in the short term. It's possible," he said.

Immediate launch unrealistic: Japan
But a Japanese government official said it was unrealistic to try and move so fast. "The general feeling is we need a good preparation for the new launch," he said.

Trade and economic issues topped the agenda of the EU-Japan meeting, the first since October 1998, but it also dealt with political subjects such as EU enlargement and Korea.

Japan was represented by Foreign Minister Yohei Kono, Trade Minister Takashi Fukaya, Agriculture Minister Tokuichiro Tamazawa and Yuriko Koike, state secretary in the Economic Planning Agency.

External Relations Commissioner Chris Patten, Trade Commissioner Pascal Lamy, Competition Commissioner Mario Monti and Farm Commissioner Franz Fischler were among the EU team.

The EU said it urged Japan to press ahead with "vigorous regulatory reforms." Patten said the EU would like to see more progress in areas such as telecommunications and transport.

He showed frustration about drawn-out negotiations with Japan on a Mutual Recognition Agreement - aimed at boosting trade by enabling Japan and the EU to recognise each other's testing and certification standards for electrical appliances, telecommunications equipment, chemicals and pharmaceuticals.

Meanwhile, an AFP report from Moscow says: Russia is determined to join the World Trade Organisation (WTO) and has "every chance" of doing so, Russian first deputy prime minister Viktor Khristenko said yesterday.

The minister estimated that Russia had "every chance" of gaining full membership at the next WTO conference to be held in Geneva before the end of the year, Itar-Tass reported.

By then Moscow should have increased farm subsidies to developed-nation levels, and adapted laws to comply with WTO regulations, Khristenko added.