8:52 AM Dec 11, 1995
MARITIME TALKS RUNNING AGROUND ?
Geneva 11 (Chakravarthi Raghavan) -- Talks at the World Trade Organization for liberalising 'maritime services' are running into trouble as a result of the United States negotiators dragging their feet, trade diplomats reported this week. Agreement on liberalisation of financial services, basic telecommunication services and maritime services, which could not be completed in the Uruguay Round, were agreed to be continued at Marrakesh. The talks in all these three areas failed to be clinched in December 1993, when accords were reached in all parts of the Uruguay Round. But an accord of sorts was reached to continue the talks beyond the conclusion of the Round, for among other reasons, the need to soften the public impression of failure by majors to practice what they preached to others. While several participants at that time, and subsequent to Marrakesh, portrayed the three as linked - where they would seek a balance - in fact they ran to different deadlines for completion. The financial services talks were concluded this year, with an agreement in which the US is effectively not a participant, merely committing itself to continue existing facilities for operators already in the market. But the agreement is to be revisited in two years time. The talks on basic telecommunications and maritime services are on voluntary basis. The basic telecom talks are due to end by 30 April while that on maritime services are to end by June 1996. While the US is the demandeur in the basic telecommunication talks, and is pushing others to liberalise and open up their markets to US suppliers, in maritime talks it has been dragging its feet. Apart from its Jones Act restrictions on foreign shipping and shipbuilders access to the US market, the powerful US shipping interests, and its trade unions, are resisting any liberalisation. Several of the countries have made clear that their involvement in a maritime services agreement would depend on such a sectoral agreement attracting a critical mass of market openings from key countries, and the United States is seen as one. Trade diplomats said that US negotiators however have been so far unable to make up their minds on their negotiating stance. The talks are to cover, under maritime services, port access and use, auxiliary services such as port handling, and ocean shipping. The US has not so far put on the table any meaningful "offer", and several others have said their own "offers" would depend on that of the United States. At the last meeting of the negotiating group, the US sought to turn the focus by asking for inclusion of multimodal transport, but others said that unless the core area of ocean shipping was addressed, these could or liberalisation of other ancillary activities could not be addressed. But meanwhile, Congress has adopted legislation lifting the ban on export of Alaskan oil, but has tagged on to it a requirement that this has to be carried in US bottoms. Till the lifting of the ban on exports of Alaskan oil, such oil could only be shipped to other parts of the United States, and this was done by US flag carriers, the whole thing being viewed as 'coastal shipping'. This is a clear violation of the requirement for standstill during negotiations -- namely that no party can put in place measures that improves its own negotiating position. Norway, Japan and the EU at the negotiating group meetings last week complained against the US actions, but the US appears to have sought to explain it away in terms of the existing ban on foreign ships carrying Alaskan oil to other parts of the US. The talks are to resume in February. But with the United States already in the grip of a Presidential election year, the administration's hands in the negotiations may be virtually tied.