Progress in the Doha Round has consistently fallen short of even the most pessimistic expectations. Four years of talks in Geneva have provided the necessary technical basis for liberalization agreements, but key countries remain unwilling to make politically difficult choices necessary for progress. For example:
• The European Union's offer to cut tariffs that restrict its imports of agricultural goods is far below what the United States and other agricultural exporters are demanding.
• The United States for its part is reluctant to cut its subsidies to its own farmers.
• Major developing countries such as Brazil and India are resisting European Union and U.S. demands for big cuts in their import duties on  manufactured goods.
This triangular deadlock continues, with no indication of any imminent breakthrough. Almost the only noteworthy Doha development in the four months since WTO ministers met in Hong Kong and set the April deadline has been President Bush's apparent downgrading of the Doha Round by moving his very capable chief negotiator, U.S. Trade Representative Rob Portman, to other duties.

If, as many observers argued, the Doha round on trade liberalization was on life support before highly regarded U.S. Trade Representative Rob Portman left last week to become White House budget director, it is hard to imagine what can be done to resuscitate trade negotiations now. (...) The political obstacles lined up to block an agreement in the United States pale compared to what confronts European negotiators and politicians in their homelands. If French President Jacques Chirac caved into the pressure from unions and student protesters over relatively minor reforms in France's labor law, imagine how quickly French nerve would collapse when Mr. Chirac or his successor is confronted by French farmers taken off the dole. Italy's political problems are equally daunting. With his political capital reduced, President Bush has apparently decided to cut his losses and toss the Doha failure on the heap next to Social Security reform and tax reform.

Peter Mandelson, EU trade commissioner, accused the US of lacking realism on agriculture, while the US trade representative's office said it wished the EU would put the same energy into the negotiations as it did in finger-pointing.

The anti-dumping amendment lets US firms raise a levy from competitors' goods which it deems to be too cheap. The amendment was ruled illegal over a year ago and repealed in February, but US firms are expected to benefit from it for a further two years. This latest penalty brings the total extra tariffs imposed upon the US to $36.9m. Peter Mandelson - the EU trade commissioner - has said that while the trade dispute has been resolved, US firms are still receiving payments. (...) Since the Byrd amendment was passed in 2000, manufacturers in the metals and food businesses among others, have been the recipients of billions of dollars in payments.

In a statement, the EU said the Byrd Amendment "has been a long-running irritant in the U.S.-EU trade relationship," but it added "that the huge bulk of EU-U.S. trade is trouble-free."

It will help EU winemakers to build on their current success in the US, which is by far the EU's largest export market. Annual EU wine exports to the US are worth more than 2 billion euros, around 40 percent of EU exports in terms of value. This agreement provides a clear demonstration that the US and the EU can resolve important and complex issues through bilateral negotiations and both sides are committed to doing so in the future.

Germany's institutions have slid from virtue to vice: in politics, in the labour market, in education, in competition policy and elsewhere. It is not that the country has not tried to change. But most of these changes have been designed to optimise existing systems rather than change them fundamentally.

Many of its global companies have never been more competitive. With exports of nearly $1 trillion in 2005, this medium-sized country (smaller than the American state of Montana, but with 82m people) already sells more goods in the world market than any other. Investment and domestic demand are also picking up at last, so Germany's economic outlook at home, too, has brightened. (...) But the labour market does not seem to have turned the corner yet: in January, unemployment before seasonal adjustment again hit 5m, or 12.1% of the workforce. (...) Most importantly, if it [Germany] does not start tackling its structural problems in earnest soon, it may find itself stuck with something its people dread: amerikanische Verhältnisse, or "American conditions", code for a socially polarised society in which workers are hired and fired at an employer's whim. The risk is that Germany's labour market, in particular, will end up "Americanised", but without the good points of the American one, such as its openness and inclusiveness, argues Wolfgang Streeck, head of the Cologne-based Max Planck Institute for the Study of Societies.

The leading neo-con magazine “The Weekly Standard” runs an article on transatlantic disagreements on free trade, airbus and agricultural subsidies, the US trade deficit.

The Europeans and the developing nations profess horror at the appointment of Paul Wolfowitz to head the World Bank. They say he doesn't know anything about development, but really worry that he knows too much: that loans to undemocratic kleptocracies might fatten Swiss bank accounts, but do little to fatten starving citizens of so-called developing countries. But Gerhard Schröder and his friends were reluctant to oppose the Wolfowitz appointment, lest they appear to be snubbing President Bush's recent friendly overtures. So they approved the appointment, and will seek a quid pro quo--the appointment of France's Pascal Lamy to fill the vacancy at the head of the World Trade Organization. Lamy is dedicated to the maintenance of the European Union's protectionist agricultural policy, which further enriches well-off French farmers at the expense of poor farmers in developing nations. If he is appointed, and spurns Bush's proposal to end both E.U. and U.S. export-inducing farm subsidies, the Doha round is doomed.