The G4 (India, Brazil, US, EU) talks held in Potsdam, Germany, from June 19, 2007, have failed to reach a consensus on tariffs and farm subsidies in the Doha round of WTO negotiations.

The meeting ended two days before schedule. Brazilian Foreign Minister Celso Amorin said it was useless to continue discussions with the numbers that were on the table.

“If the Round is to move forward, there will have to be a substantial attitude change,” Reuters quoted Indian Commerce Minister Kamal Nath as saying.

US Trade Representative Susan Schwab was equally pessimistic. “Trade agreements should generate new trade and lift people out of poverty. Unfortunately, what we have here today is not going to generate new trade,” she said.

It was hoped that an understanding among the four countries would pave the way for a breakthrough in subsequent talks.

The sticking point in the talks, according to Brazil and India , is the US 's refusal to cut its farm subsidies below $ 17 billion; Brazil wants the subsidies to be under $ 15 billion while some other countries want the cut to be under $ 12 billion.

The US wants to first see more market access for its farm goods in EU countries, and for industrial goods in developing countries. The EU, while supporting greater cuts in US farm subsidies, wants developing countries to open up for exports.

Developing countries see the insistence on greater market access by developed countries, and their refusal to effect deep cuts in subsidies as defeating the development nature of the Doha Round.

EU officials told journalists that the sort of tariff cuts being offered by Brazil would not have led to any additional business for European companies.

In a letter to Schwab and US Trade Commissioner Peter Mandelson, on June 20, 2007, top US and European manufacturers warned they could not support a deal that did little to open developing countries to more exports.

Talks will continue in Geneva over the weekend, with WTO Director General Pascal Lamy insisting that it is not the end of the road yet for the badly faltering Round.

June 23, 2007