Commission told not to offer cuts at WTO talks

The European Commission is coming under pressure from an increasing number of member states not to offer greater cuts in farm import tariffs than it has already made at the World Trade Organisation (WTO) talks.

At separate meetings of foreign affairs and agricultural ministers this week the Commission was warned not to improve its offer given that other WTO members, especially the US, have not moved their positions.

France and Ireland have traditionally been vociferous on not budging on the agricultural pledges already made, but more states, including Greece, Spain, Italy, Hungary, Cyprus and Poland, have fallen into this camp. More recently Portugal and Slovenia have also come on board and Austria, freed from taking a more balanced view while it held the EU presidency from January to June, is now of a similar opinion. Germany is also said to be "observing" the situation as it feels there will be no gains at the WTO talks on market access for industrial products and services and so does not want to see the EU making concessions in other areas, said one EU official.

The Commission has said there is room to manoeuvre if others are prepared to make concessions. Following a breakdown of talks in Geneva last month, trade ministers from the G6 (the EU, US, Japan, India, Brazil and Australia) are to meet during two sessions in Geneva on 23-24 and 28-29 July, to try to reach an agreement. Some member states are now scared that the Commission might go too far in offering cuts in agriculture. "The penny seems to be dropping for a number of countries," another EU official said.

France has been clear it does not see any reason for more offers by the EU. "We have made enough concessions, unless there is a very important counter-offer by our American friends," said French President Jacques Chirac at the G8 summit in St Petersburg at the weekend.

There is a feeling that the EU showed its willingness to change its position too soon. "People have a feeling that the Commission took the wrong path and instead of hiding its cards it showed them too soon. We haven't seen Brazil doing this," said an EU official.

The Agriculture Commissioner Mariann Fischer Boel was questioned by EU ministers this week as to whether or not the EU had offered more cuts in agriculture. She said this was not the case but stressed there was "a narrow margin for manoeuvre in which we will be willing to move if there is a situation where we see movement from other parties as well".

She laid the blame on the US for lack of progress. "We have seen no movement from the United States on the domestic support which would force them to reform their farm bill," Fischer Boel said.

"The spotlight has moved from the European Union and is now focused on the United States to show a willingness to move."

Trade Commissioner Peter Mandelson has struck a more positive note: "I do think that agreement is possible."

"We're not confident, we're hopeful," his spokesman said, adding that there was a need to capitalise on the signals that emerged from the G8 meeting. "Everybody is waiting to see what the Americans can do," he added.

The European Commission is coming under pressure from an increasing number of member states not to offer greater cuts in farm import tariffs than it has already made at the World Trade Organisation (WTO) talks.