Johannesburg — SA's envoy to WTO in Geneva, Faizel Ismail, becomes chairman of the body's trade negotiations committee

IN A move that could break the current deadlock in world trade talks, the Group of 20 (G-20) group of developing countries and the European Union (EU) say they will aim to produce a broad framework for agriculture negotiations by mid-year.

This is the first sign that talks could be revived after negotiations collapsed last September, although an agreement on agricultural issues, mainly the problem of farm subsidies in rich countries, is still a long way off.

SA's chief negotiator Xavier Carim warned at the weekend that the midyear goal for an agricultural framework depended on further talks. Carim was in Geneva for the start of 2004 World Trade Organisation (WTO) negotiations last week, and the G-20 and EU met on the sidelines to review each other's agricultural positions.

In another development, SA was appointed as chairman of the WTO's trade negotiations committee on trade and development a move that confirms the WTO's confidence in SA's negotiating skills.

"It is a real recommendation for SA and for Faizel Ismail, who will be chairman of the committee," said Carim. Ismail is SA's permanent ambassador to the WTO in Geneva.

The appointment of a chairman last week for negotiating groups in the Doha round this year also signalled encouraging signs of progress.

With the appointments in place, negotiating groups were set to restart negotiations. "We've seen the political statements, and now we have the mechanisms in place to restart negotiations," said Carim.

"This is almost like a new phase of negotiations," he said.

Scope for progress will be further explored at a meeting of 16 African ministers, EU trade commissioner Pascal Lamy and US trade representative Robert Zoellick this week in Mombasa.

Ismail will represent SA at the meeting. However, Trade and Industry Minister Alec Erwin will also meet Zoellick tomorrow in Cape Town. Zoellick is visiting a number of major cities around the world to discuss how to make strong progress in Doha talks this year.

The goal of the Doha round is to reduce trade barriers to expand global economic growth and development.

Developing countries are pinning their hopes for increased participation in world trade through this round of negotiations, which are unlikely to be completed by the deadline of January next year.

"We don't want to raise expectations too much, but there is some possibility for making progress this year," said Carim after the Geneva meeting.

He said he was not surprised by the US's and EU's commitment to trade talks despite the US elections and EU expansion this year.

"The talks are in their interest they also have a lot to gain from the round," said Carim. "There is the cost of not moving forward."

Meanwhile, the UK agricultural minister last week proposed a new method of subsidising farmers and simplifying the complex structure of subsidies. Carim had not yet seen the details of the proposals.