By Daisy Ayliffe - 22nd May 2006
European trade commissioner Peter Mandelson is once again attempting to breathe new life into stalled WTO trade talks on Tuesday.
Gathering on the sidelines of the OECD 2006 forum in Paris, Mandelson will meet US trade representative Susan Schwab, Kenyan trade minister Mukhisha Kituyi and Australian deputy prime minister Mark Vaile.
Such meetings do not have any formal procedural status but it is hoped talks will play a role in opening up deadlocked world trade talks in the period ahead.
India and Brazil’s decision to opt out of the informal ministerial reflects the lack of progress in the ongoing WTO negotiations.
The pair have made it clear that they would be prepared to make concessions allowing greater imports of manufactured goods only if the EU and US provide better market access for farm goods from poor countries.
But the clock is ticking on a deal, after an end of April deadline for finalising details in both agriculture and non-agriculture market access collapsed.
WTO director general Pascal Lamy now says details must now be in place before July.
And, with both developing and developed countries continuing to take fixed positions, the end of June deadline also seems unlikely to be met.
“It is high-time for the EU and the US to do more if they are interested in reaching a deal in July,” Oxfam insisted in a statement on Tuesday.
“Neither the US nor the EU have shown enough flexibility in these negotiations, their offers are highly unbalanced and they have put the entire round at risk.”
Addressing business leaders in Dublin on Monday, Australian prime minister John Howard, warned the EU that the US could walk away from talks if Brussels did not make greater concessions.
“Unless there is a lot more reciprocity the real danger is that the US will retreat into a more aggressive trading stance.”
At a meeting of G8 finance ministers in three weeks, some EU finance ministers will step up pressure on Mandelson to make a climb down on agriculture.
Speaking at a conference in Nigeria on Monday, the UK finance minister Gordon Brown put himself on a collision course with France by demanding that reform of the EU’s common agricultural policy be put on the agenda at next month's meeting.
Brown argued the €234bn spent on agricultural subsidies are more than six times the global aid budget and that poor countries are being hindered in their development by a lack of access to rich countries' markets.
Oxfam added that a fresh EU offer on agriculture would be a step in the right direction.
“If confirmed, reports that Europe is ready to offer improved access to its agriculture market and demand less in return from developing countries could indicate a first step in the right direction, but we are far away from a package that would be meaningful for development.”
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