2 October General Affairs Council

Date: 05/10/1995

TRANSATLANTIC ties may be strong, but showed signs of strain when EU foreign ministers debated the idea of launching a study of whether a free-trade zone between the EU and the US would be beneficial to Europe. While the ministers said that they agreed the relationship with the US was the most important to the EU, many opposed a study. France insisted that transatlantic talks should focus on political issues to force Washington to increase its funding for the UN and developing countries. French Foreign Minister Hervé de Charette also said talks should aim at curbing the instability of the US dollar, which, he said hurts Europe. Others, such as Spain, opposed the notion of free trade which might endanger their sales of farm goods. Free traders Germany, Denmark, the UK and the Netherlands avidly supported the idea of a study. Trade Commissioner Sir Leon Brittan was careful to say a study would not commit the EU to launching the trade zone.

ALGERIA'S foreign minister, Mohamed Salah Dembri, told EU ministers that Algeria is on the road to political reform and that preparations for the country's first multi-party elections are proceeding well. Near war between the government and Islamic fundamentalists has killed approximately 40,000 people in the past three years, stalling its talks for closer ties with the EU.

CHINA should also enjoy closer ties with the EU, foreign ministers agreed. They gave Brittan the go-ahead to start talks with Beijing based on his strategy. The Brittan plan includes promoting business links between European and Chinese companies as well as closer government cooperation on training, economic and social reform, environment and scientific research.

FRANCE and Germany have proposed that American and European post-war policies in Bosnia should be coordinated by a European. In a letter to their counterparts, Hervé de Charette and Klaus Kinkel outlined six areas for work: implementing the peace plan; caring for and repatriating refugees; providing humanitarian aid; monitoring arms shipments between former warring parties and assuring security; rebuilding the region; addressing questions of human and minority rights. One person should coordinate such a programme, they said, adding, “We believe this position should be given to a European.”

MINISTERS adopted the draft of a declaration to be issued at their November meeting in Barcelona with North African and Middle Eastern nations. The EU states want to form a zone of free trade and political cooperation with countries on the other side of the Mediterranean. Ministers invited Mauritania to the conference, but rejected Libya's request for a seat at the table.

MINISTERS said they agreed in principle but were not qualified to judge the Commission's draft agreement with Mercosur countries for economic and trade cooperation. The accord struck in Montevideo, Uruguay last Friday (29 September) encompasses trade, industrial, scientific and cultural cooperation with the South American group of Brazil, Paraguay, Uruguay and Argentina. The ministers sent it back to their governments for study.

MOLDOVA moved a step closer to the EU on Monday. Ministers signed an interim trade deal with the country. With a glass of champagne, the ministers handed over a package of trade concessions to Moldova that will eventually be followed by increased diplomatic and political dialogue.