By Daisy Ayliffe - 23rd January 2006
Europe could be ready to make a fresh offer to cut farm subsidies during blocked WTO talks, EU trade commissioner Peter Mandelson hinted on Monday.
Mandelson is insisting that that the obstacle to progress in a new round of world trade rules is not the EU or European farmers.
“The blockage in the round is not in Brussels, but in those countries failing to come forward with an offer on industrial tariffs and services that goes anywhere near responding to the seriousness of our offers in all sectors of the round,” he stressed in a Monday speech.
But Mandelson did not elaborate on what another EU move in agriculture might consist of.
He has previously indicated that the number of sensitive products subject to smaller tariffs cuts, could be up for negotiation.
Speaking in Berlin, Mandelson called for negotiators to reinstate ambitious targets to free up global markets in agriculture, manufacturing and services.
The WTO avoided a major collision at a December Hong Kong summit but Brussels fears ambitions are now so low no good can come from the round.
The state of the negotiations is now “serious but not desperate”, Mandelson declared in his first major speech since the summit.
Last week, Washington hinted it would withdraw its agriculture proposals if the EU did not give more ground in the sector.
US fears have been echoed by Brazil and Australia, who have also pushed the EU to go further with planned reductions on import tariffs on farm products.
But the EU executive argues that Europe’s offer of a 38 per cent average cut in farm tariffs has left the commission at the outer limit of its mandate from member states.
France and other countries remain deeply opposed to the idea of more agricultural concessions.
“It is out of the question that we consider another move in agriculture without a much clearer picture of the final result of the negotiation - and a real commitment by others to open their markets further,” the British trade commissioner stressed in Berlin.
NGOs said Brussels must give more on agriculture to save the round from collapse.
"Europe's offers on agriculture not only do not go far enough but come with potentially devastating demands for reciprocation in other areas that could more than outweigh the benefits of minor agricultural reform. Both the EU and US need to offer more and stop asking for so much in return,” Oxfam said in a statement on Monday.
Mandelson fears Europe has made real sacrifices in farming but stands to gain no significant access to industrial or chemical markets in fast-growing Brazil and India.
With such incongruent cries from key players, EU officials know they are far from achieving the “virtuous” and “balanced” dynamic they hope for.
And as negotiators hypothesise over possible outcomes, they know the sun will soon set on the global trade deal.
With an end-April deadline looming for core issues, top trade negotiators will meet on Friday and Saturday in the Swiss mountain resort of Davos.
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