MercoPress. South Atlantic News Agency

EU remains “unmovable” in WTO negotiations

The European Union Trade Commissar Peter Mandelson reiterated that the 25 member block will not improve its agriculture proposal for the coming World Trade Organization Doha Round negotiations.

"There's no new agriculture proposal and no further initiatives on the issue", said Mr. Mandelson to the press in Brussels this Monday.

EU has offered a 46% tariff cut for farm produce, but United States, Brazil and other countries are demanding more concessions from the EU.

Mr. Mandelson also emphasised he has the full support of the 25 EU members in his negotiation strategy.

"Our proposal has made EU members converge into a common strength position", he said.

French Foreign Affaire Minister Philippe Douste-Blazy also made public his warning to Mr. Mandelson that the agriculture concessions proposed should not be augmented.

"Our position remains unmovable".

Douste-Blazy insisted that the EU proposal was linked to Doha Round "movements" in other areas, besides agriculture.

The coming December Hong Kong ministerial meeting should not concentrate exclusively in agriculture, "but should also register advances in non agriculture and services".

"We all agreed that the main partners for our proposal, should react by coming up in the negotiations table with more areas", said Mr. Mandelson who added that the EU governments have agreed to "liberty and flexibility" for the coming Hong Kong round.

The French official went further, "if Mr. Mandelson wants to make more concessions regarding agriculture he would not be supported in his post". French president Jacques Chirac threatened at the end of October to veto any EU stand that exceeded what had been agreed inside the EU in 2003 regarding agriculture.

Mandelson pointed out that there's "a good base" to begin talks. The EU Trade Commissar is meeting Tuesday in Geneva with representatives from United States, Brazil and India to further talk about the coming negotiations.

"The EU will present in Hong Kong a package of development measures, which don't pretend to replace the true objectives of the negotiation in favour of the Third World, but rather complement them", said Mr. Mandelson.

"If we can agree on this in Hong Kong, it will give the conference a more humane face and show that we remain committed to the initial development objectives", added the EU Trade Commissar.

Meantime in Sao Paulo the all powerful FIESP, Federation of Industries from Sao Paulo blamed the EU for the difficulties in reaching an agreement to liberalize trade in the WTO framework.

"The current situation is of impasse, expressed in the unwillingness of the European Community to advance in its modest agriculture proposal and its tentative blaming on developing countries, particularly Brazil, for the political clout behind the stall", said FIESP in an official release.

FIESP adds that the opening of agriculture markets and dismantling of developed countries subsidies remains at the core of the negotiation, but "the EU is not willing to advance on its very modest proposal".

"Only a significant advance in the ministerial meeting can guarantee a successful ending, next year, of an ambitious, balanced agreement in accordance with the development agenda established in Doha.

"A successful round and a strong WTO are essential instruments against protectionism and trade unilateralism".