G4 Countries Attempt to Revive Global Trade Talks

Members of the Group of 4 (G4) held global trade talks in Potsdam, Germany in an attempt to make one final push to revive the Doha Round of Talks. US Trade Representative Susan Schwab was joined by trade officials from the European Union (EU), Brazil, and India. Pascal Lamy, head of the World Trade Organization (WTO), reiterated his call for a global trade agreement, otherwise the Doha Round will be stalled again for several years.

World leaders doubted that the G4 meeting will produce a favorable global trade deal, but they pointed out that any development will be welcome news to developing countries. Many concerned parties believed that the Doha Round was not successful in meeting its target of alleviating poverty among developing nations. Prior to the event, the G20 countries, led by Brazil and India, held a separate meeting last June 11 in Geneva, Switzerland. The aim of the meeting was to get a consensus among the members of the group on whether or not they were in favor of an agreement.

As expected, the meeting ended with representatives of the four countries pointing fingers at each other for the failure of the talks. Brazil and India lashed at the US and the EU, saying there was a need for both countries to change their attitudes in order for future deals to succeed. On the other hand, the United States and the European Union countered by saying that Brazil and India were not open to the influx of Western products to their respective local markets.

Since its inception in 2001, the Doha Round of Talks failed to produce a major development as some members could not settle their differences. Succeeding global trade talks in December 2005 produced a similar outcome. Now, with the United States set to lose its power to negotiate global trade deals on July 1, things are not looking good for the Doha Development Agenda.

India And Brazil Strengthen Global Trade Ties

Brazil and India held bilateral talks recently with the aim of strengthening global trade relations between them. The two countries are targeting a trading increase of $10 billion by 2010 from the current standing of $2.4 billion. Aside from global trade issues, the meeting likewise focuses on other pertinent matters like investment, defense, energy, science, to name a few. With the meeting represented by Prime Minister Manmohan Singh of India and President Luiz Inacio Lula da Silva of Brazil, both parties realized the strong need to strengthen economic cooperation between them.

On one occasion of the meeting, which is dubbed as India-Brazil Strategic Dialogue, both parties denied claims of the US that progressing countries have an active role in climate change, saying it was the result of unsustained development and elimination processes in the progressive nations. In addition, Brazil expressed its adoption of the global trade agenda of the Doha Round of Talks, which is strongly advocated by India. Likewise, the Brazilian President said that progressive nations cannot take developing countries out of the picture on the issue of the Doha Round of Talks, particularly if India and Brazil hold on to their hard-line stance.

Lula believes that progressing nations have a vital role in the economic system of the world. He contends that powerful nations should learn how to cooperate and negotiate with emerging economies. Lula also added that both wealthy and developing countries can learn from each other. As a result of globalization efforts, the focus of global trade is no longer solely on the United States and European Union.

The global trade partnership of India and Brazil began in September of 2006 when the Indian Prime Minister visited Brazil. Today, trading between the two nations is still on the development stage. Although both parties previously failed to reach their desired quota, they are still optimistic that they will reach their established target. In line with this, Brazil is set to transfer its agricultural, food processing, mining, industrial, and nuclear energy expertise to India.

On the other hand, the South American country is expected to benefit from India's solar energy, wind power, and medicine production technology. Furthermore, formal discussions concerning a three-way global trade, which involve the South African Customs Union, Mercosur(Argentina, Paraguay, Venezuela, and Brazil), and India, are already in the works. The series of discussions can boost economic relations between the involved countries.

Meanwhile, the Group of 20 (G-20) is set to meet on June 11 in Geneva to discuss global trade in relation with the Doha Round. The meeting aims to remove global trade farm subsidies issued by developed countries such as the United States.

EU and Asia on International Trade Deals

The European Union (EU) will hold a two-day international trade meeting with Asian countries to discuss measures in strengthening the relationship between the two regions. The international trade discussion will be held in Hamburg, Germany prior to a Group of Eight Assembly. The event will focus on the proposal of the European Union with regards to the adoption of energy-saving technologies to reduce carbon dioxide emissions in compliance with the Kyoto Protocol that is expiring in 2012. The Assembly hopes to draft a new set of guidelines after the termination of the Kyoto Protocol.

Aside from that, the meeting will begin with international trade bilateral talks between China and the European Union. Part of its agenda will be human rights and international trade issues. The EU hopes to convince China and other Asian countries to abolish the death penalty. Moreover, the gathering will tackle issues like climate conditions and energy. The annual gathering of nations began in the year 1996. It later became an international body of countries known as Asia-Europe Meeting (ASEM). Its total membership accounts for 60 percent of international trade.