EU links farm openings to services, manufacturing

19 Oct, 2005

The European Union is prepared to open its markets to more farm imports if other countries agree to drop barriers to trade in manufacturing and services, a top European official said on Tuesday.
"If the others move, we will move," European Commission President Jose Manuel Barroso told reporters after a meeting with US President George W. Bush to discuss the status of world trade talks and foreign policy concerns.
"What we don't accept ... is that we reduce these negotiations to an agricultural negotiation ... The European Union does not accept that. This is not fair," the head of the European Union's executive body said.
Brussels has been on the defensive in world trade talks since Washington unveiled a proposal last week to aggressively slash domestic farm subsidies and tariffs.
The United States says it is now up to Brussels to show leadership in the talks by coming forward with an improved offer to open its market to more foreign farm goods.
"The president's put forward a bold proposal ... and we're looking forward to the Europeans hopefully responding with a bold proposal as well, so that we can move forward on opening market access," White House spokesman Scott McClellan said.
The EU needs significant gains in other areas of the talks to sell an eventual agreement to its citizens, Barroso said.
"We will be ready to move if there is an ambitious and balanced (package)," Barroso said, adding he recently made the same point to Brazilian President Luiz Inacio Lula da Silva.
Brazil is co-leader of the G20 group of developing countries which has been pushing for deep cuts in rich country farm subsidies and tariffs, but has balked at offering substantial openings in their own markets.
"I said to (Lula) ... if you want an agreement, you have to move also," Barroso said, referring to the entire G20.

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