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EU demands access to G20 services markets

Saturday, October 15th 2005 - 21:00 UTC
Full article

No agreement can be reached in agriculture in World Trade Organization talks if emerging countries, particularly from Latinamerica, don't open their markets to industrial goods and services, said Friday European Union Trade Commissionaire Peter Mandelson.

"If such opening for industrial goods and services does not happen, let me be perfectly clear there will no such thing for agriculture. It's simply not feasible", underlined Mr. Mandelson in a release which was distributed in Brussels.

The statement was in reply to the latest G20 (Group of developing countries which includes Brazil, India, Argentina, among others) proposal to United States, European Union and Japan for the dismantling of domestic support to farmers and opening markets to agriculture produce so as to promote competition from emerging countries and help unlock WTO Doha round trade talks.

Earlier in the week in Geneva G20 proposed strong cuts to rich countries domestic farm subsidies: 80% when they amount to over 60 billion US dollars; 75% for those between 10 and 60 billion US dollars and less that 10 billion, 70% reduction.

As to market access, G20 suggested a minimum 54% cut in import tariffs, while developing countries would be exposed to a maximum 36% tariff cut.

Last Monday the US and EU had come forward with less restrictive initiatives, but Mr. Mandelson also warned that regarding agriculture "EU and US can't carry the full burden by them only".

"We can't offer greater prospects in agriculture for the Latinamerican competitive farmers if in exchange markets in which we are looking for greater access are not opened", insisted Mr. Mandelson.

Categories: Mercosur.

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