A Split EU

Geneva France, Ireland, Italy and Portugal yesterday strongly opposed any move by the European Union’s chief negotiators to make an agricultural market access offer in the Doha Development Agenda negotiations above what was agreed in the farm market access offer of last October, WTD was told (see related report this issued).

During a meeting of the trade and farm ministers of the European Union here, the members made it clear to EU trade commissioner Peter Mandelson and farm commissioner Mariann Fischer Boel that there is no new mandate to show flexibility. "No authorization was given to move towards the G-20 position be it 50 or 54 percent," said French trade minister Christine Lagarde. She also ruled out any prospect for going up to the G-20 level of some 64 percent.

But some other members Britain, the Netherlands and Sweden said the two commissioners must show flexibility if Brussels’ offensive interests in market-opening for industrials and services are to be reciprocated.

Unless Brussels shows flexibility, the round is in jeopardy, a US trade official warned yesterday. "I think if the European Union comes here not prepared to move at all, we will not conclude the negotiations," he told reporters.

One EU source suggested that Mr. Mandelson and Ms. Fischer Boel will have to tread carefully between the two camps.

EU trade commissioner Mandelson said the EU is ready to move towards the G-20 proposal but only on average tariff cuts, which exclude "sensitive" products and only if there are measurable responses from others in industrial market access and services.