Thursday, March 1, 2012

Fed: Iraq war threat not damaging free trade push: Vaile

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Fed: Iraq war threat not damaging free trade push: Vaile

By Rob Taylor, Foreign Affairs Correspondent

CANBERRA, Feb 16 AAP - The possibility of war in Iraq would not derail world tradetalks, and in fact was strengthening the push for trade liberalisation, the federal governmentsaid today.

Trade Minister Mark Vaile was speaking from Tokyo where he has been attending a meetingof trade and agriculture ministers from 22 World Trade Organisation (WTO) countries.

The three-day meeting broke up without resolving a deadlock on cheap drugs for developingcountries and farming subsidies.

But Mr Vaile said one positive was an increased recognition that trade could help easeglobal tensions in the future.

"We got the sense during the course of this meeting here this weekend in Tokyo thatthe global uncertainty and insecurity at the moment is actually adding momentum to whatwe're trying to do here," he told AAP.

"If we can continue to strengthen the global economic circumstances through openingup markets and working closely together, it may well provide a balance I suppose to someof the security circumstances that exist."

The mini-ministerial meeting was described as "constructive".

But all sides appeared little closer to ending the impasse over the two key issuesahead of looming deadlines.

"We just finished our meeting, we had constructive and interactive discussions allthrough," Japanese Foreign Minister and chair of the informal talks Yoriko Kawaguchi said.

"It was not a forum for taking any decisions.

The meeting came just seven months ahead of the next full ministerial conference inCancun, Mexico.

It will serve as a mid-term review of the overall round of discussions which startedin the Qatari capital Doha in November 2001.

Mr Vaile said the meeting had helped clear some of the thorny issues surrounding agriculture.

"Everyone has acknowledged that agriculture is and will be the linchpin of the Dohanegotiations, and without a satisfactory outcome on agriculture there won't be an outcomein other areas," he said.

"So that's been clarified over the weekend."

But he said it was disappointing the European Union and Japan appeared unwilling tomove forward on the agricultural trade reform commitments they made in Doha.

"The negotiations are at a critical stage and its time for the EU and Japan to stepup to the plate," he said.

Mr Vaile will head to Singapore tomorrow where he will sign a free trade deal betweenthe island nation and Australia.

AAP rft/sco/br a

KEYWORD: WTO VAILE

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