Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 928 Mon. January 08, 2007  
   
Business


Unlocking World Trade Talks
Mandelson seeks new political impetus from EU, US


EU Trade Commissioner Peter Mandelson called on Saturday for a "new political commitment" between Europe and the United States to revive the stalled Doha round of world trade talks.

His comments came ahead of Monday's meeting in Washington between European Commission President Jose Barroso and US President George W. Bush

Mandelson himself will hold talks with US Trade Representative Susan Schwab in Washington on the same day.

"Monday's meeting is the opportunity for the EU and the US to invigorate the multilateral Doha trade talks," Mandelson said in a statement.

"I hope both sides will signal strong new political commitment to rapid progress. We have now entered a narrow window of opportunity lasting until Easter during which success for the world trade talks is possible," he added

"The quiet, constructive bilateral contacts of the last few months have made clear to us all the possible outline of a final deal. We now need the added momentum of political leadership from the highest level. Europe and the US have a shared responsibility to make this happen."

The EU officials hope to see a change in political willingness to end the impasse with the passage of control in the US Congress to the Democrats.

"It's undeniable there was protectionist rhetoric around the elections in November but I think we have to look beyond that," Mandelson's spokesman Peter Power said on Friday..

The World Trade Organisation suspended the so-called Doha round in July after negotiators from six major players, including the US, EU, Brazil and India, failed to hammer out a framework of an accord after five years of talks.

The Doha Round, launched in the Qatari capital in November 2001, is mired in an impasse as Western and developing countries remain split on issues such as agriculture subsidies and market access.

Developing countries are demanding lower tariffs on their agricultural exports to US and European markets while industrialised nations seek greater access to developing and emerging countries for their industrial goods and services.

Mandelson's office stressed that Europe remains willing to improve its farm tariff offer by adding substantially to the 39 percent cuts it offered a year ago.

Europe is ready to add more than ten percentage points "and get within close reach of the average farm tariff cut demanded by developing countries," which is 51.5 percent, the statement said.

"We are ready to do this in a way that demonstrably gives new market access to the United States and other agricultural exporters in all products," it added.

The EU is asking Washington to make for real cuts in its farm subsidies, also to levels close to those requested by developing countries.

This would mean a budget cut of around eight billion dollars from current ceilings of 23 billion to around 15 billion dollars.

Mandelson's "window of opportunity" is slightly narrower than that expounded by WTO Director General Pascal Lamy, who last month said the window would remain open for the first half of the year.

The key date is July 1, 2007, when the Trade Promotion Authority which allows Bush to negotiate trade deals, for Congress to approve, expires.

Mandelson believes the key Doha breakthrough must come well ahead of that date to avoid complications.

Apart from Mandelson and Barroso, the EU's External Relations Commissioner Benita Ferrero-Waldner will also take part in the visit to Washington.

Trade and economic ties aside, the talks are also expected to focus on energy security, climate change and the Middle East.

The White House has also said that Afghanistan, Darfur and the fight against terrorism will also be on the agenda.