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Strike a just deal
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The scene at the Doha Round of the World Trade Organization in Geneva looked so similar to that of the global talks on climate change.

The North and the South are divided on matters of great significance because their development patterns differ.

As the case stands, pointing accusing fingers is no great help.

The United States is pricing itself out of the market at the Doha Round when its interest is secured. It blamed China and India, which have their own policies on cutting farm and industrial tariffs, for having "thrown the entire Doha Round into the gravest jeopardy of its nearly seven-year life."

China cannot accept some elements of the crafted package WTO Director-General Pascal Lamy came up with last week.

On special safeguard mechanism, the WTO package asks developing countries to wait for an import surge of 40 percent more than the average of previous three years before they impose additional duties. This proposal would put the livelihoods of vulnerable farmers of the developing world in danger due to cheap farms imports from the rich world.

The major developed countries have benefited a great deal from his proposal, which would leave them with tremendous freedom for farm subsidies.

Having deep pockets, these nations called China and India obstacles to the negotiation without regard to their development.

The rich world, led by the US, pays no respect to the development dimension of the trade talks. They make no commitments to reform their agricultural policies by drastically reducing the huge trade-distorting farm subsidies and tariffs.

Had the issues of livelihood security, rural development and greater industrialization of developing countries been addressed, the Doha Round talks could result in a global trade deal with a development dimension. The negotiations are not supposed to produce a deal just for protecting and promoting prosperity in rich nations.

The sharp differences between the developed and the developing countries over liberalization commitments in agriculture and industrial products paint a telling picture of the realities of the two sides.

When the countries of the world sit down and talk for a trade deal, no countries are entitled to push their commercial interests at the cost of the livelihood of people in the developing world.

Minister of Commerce Chen Deming called for compromises from the developed nations. It will not do just to cover all their sensitivities. The concerns of the developing world must also be taken into consideration. Or the talks would "go nowhere", as Chen put it.

(China Daily July 30, 2008)

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