Trade talks not hidden agenda for new EU farm reform

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By Daisy Ayliffe and Bruno Waterfield, updated at 15:15
- 17th October 2005

The EU will not use world trade talks to push through new reforms of the Common Agricultural Policy, European Trade Commissioner Peter Mandelson insisted on Tuesday.

Speaking at an emergency meeting of EU foreign ministers called by France, Mandelson told reporters that Brussels had no hidden agenda.

"It is absolutely and unequivocally not the intention of the commission to use the Doha Development Agenda negotiations to precipitate a new phase of CAP reform," he said.

Mandelson's remarks were designed to allay fears amongst some member states – notably France - the largest beneficiary of EU farm aid.

Europe's top trade negotiator had previously warned France and other EU farming states not to tie his hands in global trade talks after Paris protested he had offered too much.

"Surely it would be the wrong reaction, and a terrible mistake for the EU, at the first sign of serious movement in the talks ... to lose confidence and pull in our horns," Mandelson said.

Mandelson rejected a French proposal that his negotiating positions be subjected to oversight by EU capitals.

“The proposal is that before any negotiating proposal is made by the commission in the Doha Round, it would be scrutinised, analysed and agreed by a technical committee to assess the social and economic impact on Europe.”

“That would stop the world trade talks in their tracks.”

Backing the Mandelson's negotiating mandate Europe’s foreign ministers made some concessions to French calls for greater accountability.

“This process would include explanations to [governments], confirming that the commission's action remained within the mandate, including, as necessary, the use of technical analysis,” said a statement.

Mandelson was explaining his position ahead of the WTO meeting in Hong Kong in December - considered the last chance for a global trade deal under the current negotiating round.

But faced with calls to slow down from within Europe on Tuesday, he will be pressed by the US and Brazil to offer more on farm trade when talks resume in Geneva on Wednesday and Thursday.

The main trading nations are searching for common ground, particularly on agriculture, to clear the way for a global trade deal to be agreed in December.

The EU has so far offered a 70 per cent cut in trade-distorting farm subsidies, largely in line with a reform already agreed by member states.

It has also proposed cuts of at least 50 per cent in its highest farm import tariffs and fewer "sensitive" goods that it protects the most.

“Perhaps some of the member states need a reality check about the state of
negotiations in this round,” Mandelson said.

“We need to make progress on agriculture but we also need to make progress in other areas. We will play our part in resolving differences of view that exist in agriculture.”

“I believe my negotiating mandate will be reaffirmed.”

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