Side talks on services trade could spur WTO: U.S. nominee

The Doha round of trade talks, which began in 2001, has stalled on agriculture and manufacturing issues, holding back talks on services, Michael Punke said in written answers to questions from the Senate Finance Committee.

“We need to make broader-based progress in key service sectors, particularly those infrastructure services that are most important to economic development,” Punke said.

The United States is looking at whether “an enhanced plurilateral approach” in certain services areas could “complement and spur the existing negotiating process,” Punke said.

He cited as examples information, communications and technology services, energy and environmental services, and distribution and express delivery services.

The Senate Finance Committee had been slated to consider Punke's nomination on Thursday but postponed the hearing late on Wednesday until a later date.

The 153 members of the WTO have said they want to conclude a new trade deal in 2010. U.S. Trade Representative Ron Kirk has stressed that the United States cannot agree to a deal without progress on services.

Both Punke and Islam “Isi” Siddiqui, nominee for chief U.S. agricultural negotiator, have said they will not send a deal to Congress for approval unless it clearly gives U.S. companies and farmers greater market access to developing nations.

“I can assure you that the administration will not conclude a Doha deal that does not work for U.S. farmers, ranchers and agribusinesses,” Siddiqui said in his written comments.

The United States has been asked to cut its domestic support for farmers as part of the Doha round, which was intended to help poor countries prosper through trade.

But the most-advanced developing countries must ensure they open up their markets to trade, said Punke, citing China, Brazil and India as examples.

“The power and influence of these countries in the world economy has expanded dramatically, even since the beginning of Doha negotiations in 2001. It is vital for them to accept the responsibility that goes along with this power and influence,” he said.

Punke and Siddiqui both said they would consult with Congress and the cotton industry on politically sensitive cuts for that sector, and said they were not in favor of giving up cotton supports before WTO talks conclude.

Siddiqui said the administration wants to engage Mexico, Japan, China, Taiwan, Korea and other nations to “normalize” U.S. beef exports, which have been hampered by restrictions since 2003 with the U.S. industry's first case of mad cow disease.

“Where they should fail to do so, I will, together with USTR trade officials, aggressively utilize, in cooperation with other administration and congressional colleagues, all available tools in the WTO and other mechanisms” to ease restrictions on beef trade, he said.

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