EU Standing Pat in London

London European Union trade commissioner Peter Mandelson yesterday assured the EU Council of Ministers that he will not table a new proposal on agricultural market access at the "quad"plus ministerial meeting as demanded by the United States, WTD has learned (see related report this issue).

Before going to London to attend the trade ministerial summit of the United States, the EU, Brazil, India and Japan the commissioner met briefly with the Council of Ministers, and told them that he is not unduly worried about criticism being raised by the United States and other major farm exporting countries about the EU offer on market access. He said "criticism" of the October 28 proposal was "predictable" but the plan has not been rejected. The EU commissioner said Brussels will defend its proposal at the London meeting. He also said he will step up efforts among members to secure commensurate results in nonagricultural market access and services.

France warned the EU commissioner that he is being "watched" on every initiative. Brussels has already crossed the bottom-line, the French minister told Mr. Mandelson.

Prior to joining the "quad"-plus session, the EU commissioner held a tete-a-tete with US Trade Representative Rob Portman. What was discussed was held tightly, but reports indicate that the USTR pressed hard for further improvements in agricultural market access.

In a separate press conference, Brazilian foreign minister Celso Amorim said the "ball is in the EU's court." The latest proposal is in the right direction, but Brussels needs to do more, he said. Agriculture is the "motor" of the Doha Development Agenda trade negotiations.

The Brazilian minister who met with British Prime Minister Tony Blair before the trade summit was led to understand that flexibility was built into the EU proposal.

Mr. Amorim warned that the EU should not come down hard on its affiliated Africa/Caribbean/Pacific nations, saying Brazil would be willing to help them address the erosion of trade preferences that might emerge from the negotiations.