MEDIA REACTION ON WTO, SEPTEMBER 19, 2003

UNCLAS TEGUCIGALPA 002233

SIPDIS

DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; EB/TPP DCLUNE, AND
IIP/T/ES

E.O. 12958: N/A
TAGS: OIIP KPAO ETRD HO
SUBJECT: MEDIA REACTION ON WTO, SEPTEMBER 19, 2003



1. Op-ed by Roger Marin Neda in Tegucigalpa-based moderate daily
"El Heraldo" on 9/19 entitled "Running after a mirage". "There
were no great expectations before the failed WTO meeting in
Cancun, although we are aware that free trade is fundamental for
economic growth and poverty reduction."

"For some, the failure of the Cancun meeting began in 1996 when
the EU and Japan requested the inclusion of several new issues in
the original WTO agreement: policies to promote competitiveness,
transparency in government purchases, and deregulation of foreign
investment and trade. Developing countries saw more obligations
without more rights, more costs than benefits, increased risks of
legal penalties, and restrictions for their labor and
environmental policies."

"The U.S. presented a much better proposal: the progressive
elimination of tariffs on manufactures until 2015, and a 76%
reduction of tariffs on agricultural goods for the next five
years. It was a sound proposal, but it didn't address the issue
of agricultural and cotton subsidies. A New York Times editorial
stated that, `businesses, workers and taxpayers should be
angered, because this administration is far more enthusiastic to
support the most indefensible protectionism than protecting the
national interests, by promoting growth through greater trade'.
Undoubtedly, the U.S. was more flexible and open, and I believe
their proposals would have been viable if the demands from Japan
and the EU didn't place such heavy burden on the developing
countries."


"One of the biggest surprises of the Cancun meeting was the G-21,
where half of the global population and two-thirds of the
agricultural producers live. The G-21 demonstrated its unity,
strength and boldness, even though countries like China, Brazil,
India and South Africa have very different economies and cultural
values, and it's uncertain that they will share a medium or long-
term common position, as they did in Cancun."

"It will be unrealistic for developing countries to have long-
term expectations in the G-21. It'll be like going after an
illusion, a mirage. It's like expecting that the equality of
global trade on agricultural goods will bring immediate benefits
to the producers."

Palmer