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Magic in the air, but wizards fail to pull rabbits out of hats

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SCMP Reporter

They came, they saw, they could not conquer. But ministers from the World Trade Organisation's 150 member economies at least agreed to meet and fight another day, giving the Doha Development Round another chance as it limps towards its effective deadline at the end of 2006.

This was a meeting that desperately needed heroes, and all eyes were at first on WTO director-general, Pascal Lamy. Brandishing a 'magic' wand during his opening address to the conference, he at least held out the promise of wizardry. In the end no rabbits appeared from the director-general's hat.

Villains abounded, but who these were depended on who one asked about what subject. Initially European Union Trade Commissioner Peter Mandelson, not helped by his 'Prince of Darkness' moniker, was the obvious scapegoat. Criticised by France and other EU members who felt he had already given away too much (and by pretty much everyone else for offering too little, too late), New Labour's most famous spin doctor nonetheless succeeded in creating a little breathing room for himself.

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Basically, Mr Mandelson started a food fight over food aid with the US and its trade representative, Rob Portman. Tuesday and Wednesday saw the EU and US raise and match 'Aid for Trade' packages, which endeavour to help the world's poorest countries build key trade infrastructure - ranging from port projects to enhanced customs systems. As they did so, the two global trade powers carried on a bitter ancillary argument about whether food aid should be granted in cash (the EU's position) or in kind (America's).

Then came cotton. This crop has many sins to atone for; its economics did much to help spread and sustain the institution of slavery before the industrial era. And it remains an emotive issue on which the US is particularly vulnerable. America, a major cotton producer and exporter, stands charged with maintaining domestic supports for the industry that depress global prices and directly impact the livelihoods of impoverished West African cotton farmers - especially in the so-called 'C4' group of countries: Benin, Burkina Faso, Chad and Mali. The US position is that the price distortions caused by its cotton supports are grossly exaggerated and that it is working hard to remove them in the face of concerted political opposition on Capitol Hill.

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'We fundamentally agree with [the C4] on the objective [subsidy elimination],' one frustrated senior US official told the South China Morning Post. He also maintained America's closed-door discussions with the C4 'have been very good'.

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