PRESS RELEASE

July 30, 2008

Rice NGO blames US' extreme greed for the collapse of WTO talks;

Rice Watch and Action Network (R1) blames the United States and the G7 group of rich nations for the collapse of the ongoing negotiations in the World Trade Organization (WTO) in Geneva.

"The US' unmoderated greed led to the collapse of the talks while the other rich countries belonging to G7 continue to tighten the flexibilities that we as developing countries are entitled to in the Doha Development Round," said Jessica Reyes-Cantos, R1 Lead Convenor.

G7, composed of the US, European Union, Canada, Japan, India, Brazil and China, launched informal talks the past days to thresh out the major issues on agriculture and NAMA.

According to sources among the negotiators, the figures that emerged in the G7 meeting would allow the Philippines and other developing countries to get tariff increase only if massive importation in agricultural products breaks 40 percent of the previous year's import volume and price trigger.

The G33 or the group of developing countries are said to have rejected this position. However, the US further increased this to 50 percent of the previous year's import volume and price trigger that led to the collapse of the talks.

"The United States and the G7 wanted us to be severely hit by massive importation first before we'll be able to get remedies from tariff increase. This is an unfair deal that should be rejected. We commend our agriculture negotiators for standing by our interests," said Cantos.

WTO Director General Pascal Lamy called for open-ended negotiations last week to break the impasse in the Doha Development Round.

R1 is pushing for the Special Safeguard Mechanism (SSM) that would allow tariff adjustment of agricultural products severely affected by import surges. The local farm sector has to contend with import surges in agricultural products at prices lower than the local produce.

R1 earlier asked the agriculture negotiators to stand firm on the G33's proposal to allocate at least 20 percent of agricultural tariff lines as Special Products (SPs). Under the WTO modalities, these are allowed tariff reduction smaller than the formula approved in the negotiations. The group also pushed for the exemption of half of the SPs from tariff reduction. (END)

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