Meetings in Shanghai between U.S. trade representative Robert Zoellick and China’s Foreign Trade Minister Shi Guangsheng have apparently produced “a consensus on major issues” further clearing the way for China’s admission to the World Trade Organization.
The main difference centered on the level of agricultural subsidies. China has stood firm on its demands to be classified as a “developing nation, and thus permitted to offer price supports up to 10 percent of the value of agricultural output, rather the the 5 percent permitted to developed countries.
Although no details were reported, commentators indicated that a compromise had been made to accept a subsidy level between 7 and 8 percent.
Discussions were also held concerning China’s apparent reluctance to open its insurance market to foreign companies as it has agreed to do. While Zoellick’s statement indicated that agreement had also been reached on this issue, he gave no precise indication of what had been decided.
The agreement paves the way for talks between China and the WTO working group, scheduled to be held in Geneva at the end of the month, to reach a final agreement on Chinese admission to the WTO, and participation in its next plenary session, scheduled to take place in Qatar in November. It may take longer than that, however, to complete the formal admission process, depending on the results of the Geneva negotiations.
Topics USA Agribusiness China
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