EU will not move further on agriculture at WTO

05 Dec, 2005

The European Union will make no further concessions on lowering agricultural tariff barriers in world trade talks without significant offers from other countries, EU Trade Commissioner Peter Mandelson said on Sunday.
Mandelson also accused British finance minister Gordon Brown of "going over the top" in his call this weekend for a more far-reaching reform of Europe's Common Agricultural Policy (CAP) to help broker a breakthrough in World Trade Organisation talks.
Ministers from 148 countries meet at a Hong Kong WTO conference this month but splits, particularly over agriculture, have dashed hopes of a deal on reforming world trade.
Asked if the EU's offer on cutting tariffs on farm goods was a bottom line, Mandelson said: "Something would have to change in this round and other people would have to put some serious offers on the table in other sectors of the negotiations for us to move even further than we are proposing on agriculture."
"There won't be a final deal in Hong Kong nor will there be the two-thirds of a deal that we originally wanted in Hong Kong," he told ITV's Jonathan Dimbleby programme.
Brown on Saturday urged the EU and the United States to go further in cutting agricultural subsidies to get an agreement on world trade reform.
Agriculture and the CAP are also at the heart of a spat over a long-term EU budget and British ministers stress CAP reform is essential to help the world's poor.
Brown was speaking at a meeting of finance ministers from the Group of Seven industrialised nations, where Brazilian and Indian officials offered concessions on industrial goods and services to break the impasse but said developed countries must at least match their moves.
"I think he's going somewhat over the top in asking for that," Mandelson told ITV's Jonathan Dimbleby programme.
"Obviously, as ever with Gordon, there is a kernel of truth in what he asks for. In essence he's right - the CAP needs reform and spending needs lowering - but he needs to say it in a better proportion than he seemed to be suggesting in his remarks yesterday," he added.
Mandelson - whose tense relations with Brown are well documented - said removing tariff barriers could harm the poorest developing nations who depended on them to ensure market access for their goods. Asked if he thought Brown was "missing the point", he said: "He is indeed, yes."
The Hong Kong meeting had initially been scheduled to agree a draft treaty on overhauling world trade, including smashing subsidies and opening up markets.
But a date for the elimination of farm export subsidies, which has already been agreed in principle, is unlikely to emerge from Hong Kong as some had hoped.
However, trade ministers from the EU, Japan, Brazil, India and Australia agreed in Geneva on Saturday to prepare the ground for such a move by setting an end-February deadline for completing technical work.

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