A Crucial Week For WTO Farm Talks

by Ulrika Lomas, for LawAndTax-News.com, Brussels

18 October 2005

WTO farm trade talks will begin again tomorrow in Geneva with ministers from the US, the EU, Brazil, India and Australia attempting to construct some sort of agreement in advance of a full Doha Round plenary in Hong Kong in December.

Meanwhile, EU foreign ministers will meet in emergency session today to try to square France's bitter opposition to further subsidy cuts with EU Trade Commissioner Peter Mandelson's apparent flexibility.

Lurking in the background is the mooted trade-off between the UK's preparedness to see a cut in its EU 'rebate' and further subsidy cuts, which won't be discussed until December - far too late for any EU WTO offer. The French will be asking the UK to 'promise' to accept a budget rebate cut in return for giving Mr Mandelson his head in Geneva this week.

Also today, José Manuel Barroso, European Commmission president, will be giving his backing to Mr Mandelson's approach when he meets President George W. Bush at the White House. Commissioner Mandelson was due to go to the US as well in advance of the Geneva meeting, but stayed behind in order to placate France.

Although the EU's proposals, tabled last week, are too much for the French, they are not enough for US Chief Trade Representative Rob Portman, who said they would have to be improved to match the US offer of a 60% cut, also made last week. Needless to say, the developing countries, headed by Brazil and India, don't think either set of proposals is good enough.

World Bank President Paul Wolfowitz said last week that China, India, Brazil and other developing countries must join the US and Europe in offering concessions. "In an effort to save the negotiations, the United States and the European Union made important offers this week to cut farm subsidies and trade tariffs. But unless all countries make similar concessions, the Doha Round will not deliver results," Wolfowitz said in a speech at China's Lanzhou University.

Portman and Mendelson's predecessors, Pascal Lamy and Robert Zoellitz, were both long-distance runners. All-in wrestling would be a useful extra skill for their counterparts this week!

Recommended