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Don't rock the boat on services

Lamy's call to the commerce lobby to step back fails to ease delegates' impatience

WTO director-general Pascal Lamy yesterday warned global business leaders to back off from their trade ministers and stop making a fuss over services negotiations.

'The draft [on services] is in reasonable shape and I don't advise you to rock this boat,' he told a meeting of more than 30 business groups from 60 countries, 'even if various constituencies are planning to do that'.

The remarks came after the commerce lobby asked what they could do to help broker a decent deal for businesses this week, with services in particular of crucial interest.

At least one member had made it clear: 'We are getting a little impatient.'

Mr Lamy's suggestion that they leave ministers alone was met with frustration, although some business groups took his statement on services as an indication that at the very least negotiations will not go backwards. Business groups are at pains to get services put further up the priority list of this week's ministerial meeting.

The first two days of the World Trade Organisation negotiations have seen a muted response to the services agenda from key players, as trade ministers try to scrape together a deal on agriculture.

Mr Lamy from the outset made it clear that the focus should be on agriculture, industrial goods and a deal for least-developed countries.

One of the key drivers for reform of services negotiations, the European Union, was in defeatist mode this week with Trade Commissioner Peter Mandelson saying the services draft was not 'as full or ambitious as we would have preferred' but would be acceptable.

South Korea's Deputy Minister for Trade, Kim Hyun-chong, began his role as facilitator on services negotiations yesterday, with commerce groups hoping they keep a draft text that would shift deals to a more plurilateral (more than two) system, rather than the bilateral request and offer method.

Moderator at yesterday's business meeting with Mr Lamy, Hong Kong Coalition of Service Industries chairman Nicholas Brooke, said he found the WTO chief's comments on lobbying ministers 'very unfortunate, but I don't think he expected it to come out as hard as it did'.

However, he believed he was being realistic about services and was optimistic of making headway. 'Behind the scenes comments [with ministers] have been very pragmatic.'

Senior director of the Hong Kong General Chamber of Commerce Chan Wai-kwan took Mr Lamy's words as more of a call for patience among business groups. Others were less impressed. 'The business community came here frustrated and it's going to go home with tempers pretty high,' noted Jane Drake-Brockman, executive director at the Australian Services Roundtable.

Mr Lamy was yesterday handed a Hong Kong Joint Business Declaration by the group, calling for political leaders to commit to meaningful outcomes at this conference.

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