Latin American Bloc Stalls WTO Bali Trade Talks

[Zorro]

Source: Bloomberg

The World Trade Organization temporarily suspended discussions aimed at a global update of trading rules after opposition from a group of Latin American nations led by Cuba.

The bloc, which includes Bolivia, Nicaragua and Venezuela, refused to agree to a deal in part because it didn’t include a proposal that may affect the 53-year-old U.S. trade embargo against Cuba, Bloomberg BNA reported from Bali, where the talks are taking place.

The members were scheduled to reconvene later this morning as negotiators attempted to revive the deal that would smooth cross-border commerce and protect farm programs in developing nations. WTO ministers were nearing an accord after the U.S. and India bridged differences over agriculture policy.

If a deal can be struck, supporters say it may boost the global economy by $1 trillion and breathe new life into the Geneva-based WTO as a forum for international trade deals. Officials from the organization and the U.S. have said that failure to reach an accord would diminish confidence in the trade-dispute arbiter.

Read more: http://www.bloomberg.com/news/2013-12-06/latin-american-bloc-stalls-wto-bali-trade-talks.html

[pampango]

1. WTO agrees global trade deal worth $1tn

There will also be improved duty-free access for goods sold by the world's poorest countries. The deal, which could add about $1tn to world trade, gives developing nations more scope to increase farm subsidies.

The rich countries have agreed to help the poorer WTO members with implementing this agreement. Rich countries and the more advanced developing countries have agreed to cut tariffs on products from the poorest nations.

Getting this deal has involved introducing some extra flexibility into the existing WTO rules on farm subsidies. India led the campaign, by insisting that it should be allowed to subsidise grain under its new food security law.

But campaigners describe the plan as weak. Nick Dearden of the World Development Movement said: "If the US and EU really wanted to tackle global poverty, they would have made the least-developed-countries package much stronger."

http://www.bbc.co.uk/news/business-25274889

[muriel_volestrangler]

2. WTO overcomes last minute hitch to reach its first global trade deal

(Reuters) - The World Trade Organization reached its first ever trade reform deal on Saturday to the roar of approval from nearly 160 ministers who had gathered on the Indonesian island of Bali to decide on the make-or-break agreement that could add $1 trillion to the global economy.
...
The talks, which had opened on Tuesday, nearly came unstuck at the last minute when Cuba suddenly refused to accept a deal that would not help pry open the U.S. embargo of the Caribbean island, forcing negotiations to drag into Saturday morning.

Cuba later agreed on a compromise with the United States.

http://www.reuters.com/article/2013/12/07/us-trade-wto-idUSBRE9B505220131207