EU offers to stop farm export subsidies

THE European Union (EU) has offered to eliminate its agricultural export subsidies and soften its demands for controversial new trade rules in an attempt to revive progress in the Doha world trade round.

The offer, in a letter to trade ministers from all 148 World Trade Organisation members, is intended to show that the EU is committed to pushing ahead with the stalled round and is willing to take a more flexible stance. Signed by Pascal Lamy, EU Trade Commissioner, and Franz Fischler, Agriculture Commissioner, the letter precedes important meetings of trade ministers in Paris from tomorrow, at which renewed efforts will be made to agree by July a negotiating framework for the round.Lamy said, “we show we are ready to go the extra mile to ensure we conclude 50 per cent of the round by 2004.All WTO Members developed and developing alike have to translate political commitment into concrete movement on the substance if we want to get an agreement on modalities by July.”Subsidies have long been a sore point with poorer nations who claim that they give farmers from more developed countries an unfair advantage by keeping prices artificially low.It was a lack of consensus on this issue which caused the break down of WTO talks in Cancun, Mexico last year.However, any agreement concerning the cessation of subsidising farm exports will depend on the compliance of other WTO countries such as the US, Canada and Australia.The US has indicated a willingness to negotiate on export subsidies, and its Trade Representative Robert Zoellick, said in an interview that movement by the EU on export subsidies and new trade rules were needed to encourage other members, particularly African countries, to support the WTO talks.- Source: Tradewatch.comSigned by Pascal Lamy, EU Trade Commissioner, and Franz Fischler, Agriculture Commissioner, the letter precedes important meetings of trade ministers in Paris from tomorrow, at which renewed efforts will be made to agree by July a negotiating framework for the round.Lamy said, “we show we are ready to go the extra mile to ensure we conclude 50 per cent of the round by 2004.All WTO Members developed and developing alike have to translate political commitment into concrete movement on the substance if we want to get an agreement on modalities by July.”Subsidies have long been a sore point with poorer nations who claim that they give farmers from more developed countries an unfair advantage by keeping prices artificially low.It was a lack of consensus on this issue which caused the break down of WTO talks in Cancun, Mexico last year.However, any agreement concerning the cessation of subsidising farm exports will depend on the compliance of other WTO countries such as the US, Canada and Australia.The US has indicated a willingness to negotiate on export subsidies, and its Trade Representative Robert Zoellick, said in an interview that movement by the EU on export subsidies and new trade rules were needed to encourage other members, particularly African countries, to support the WTO talks.- Source: Tradewatch.com