Side talks on services could spur WTO: U.S. nominee
NEW YORK (Reuters) - The United States is eyeing side talks with key partners on services trade as a way to spur flagging World Trade Organization talks, the Obama administration's nominee for WTO ambassador said.
The Doha round of trade talks, which began in 2001, has stalled on agriculture and manufacturing issues, holding back talks on services, Michael Punke said in written answers to questions from the Senate Finance Committee.
"We need to make broader-based progress in key service sectors, particularly those infrastructure services that are most important to economic development," Punke said.
The United States is looking at whether "an enhanced plurilateral approach" in certain services areas could "complement and spur the existing negotiating process," Punke said.
He cited as examples information, communications and technology services, energy and environmental services, and distribution and express delivery services.
The Senate Finance Committee had been slated to consider Punke's nomination on Thursday but postponed the hearing late on Wednesday until a later date.
To see Punke's complete written comments, click on: link.reuters.com/saz32g
The 153 members of the WTO have said they want to conclude a new trade deal in 2010.
U.S. Trade Representative Ron Kirk has stressed that the United States cannot agree to a deal without progress on services.
Both Punke and Islam "Isi" Siddiqui, nominee for chief U.S. agricultural negotiator, have said they will not send a deal to Congress for approval unless it clearly gives U.S. companies and farmers greater market access to developing nations.
"I can assure you that the administration will not conclude a Doha deal that does not work for U.S. farmers, ranchers and agribusinesses," Siddiqui said in his written comments.
To see the text, click on: link.reuters.com/bez32g
The United States has been asked to cut its domestic support for farmers as part of the Doha round, which was intended to help poor countries prosper through trade.
CHINA, BRAZIL, INDIA MUST GIVE MORE
But the most-advanced developing countries must ensure they open up their markets to trade, said Punke, citing China, Brazil and India as examples.
"The power and influence of these countries in the world economy has expanded dramatically, even since the beginning of Doha negotiations in 2001. It is vital for them to accept the responsibility that goes along with this power and influence," he said.
Punke and Siddiqui both said they would consult with Congress and the cotton industry on politically sensitive cuts for that sector, and said they were not in favor of giving up cotton supports before WTO talks conclude.
Siddiqui said the administration wants to engage Mexico, Japan, China, Taiwan, Korea and other nations to "normalize" U.S. beef exports, which have been hampered by restrictions since 2003 with the U.S. industry's first case of mad cow disease.
"Where they should fail to do so, I will, together with USTR trade officials, aggressively utilize, in cooperation with other administration and congressional colleagues, all available tools in the WTO and other mechanisms" to ease restrictions on beef trade, he said.
Siddiqui's nomination has been criticized by organic, environmental and small-farm groups because of his work with chemical trade lobby CropLife America.
In response to questions from senators, Siddiqui pledged to represent both organic and conventional farmers, and said he would refrain from participating in matters involving the CropLife group for two years after his appointment.
(Editing by Philip Barbara)
