EU and US must get Doha show on the road, warn industry chiefs

Date: 26/06/03

By Peter Chapman

AMERICA and the EU should bury the hatchet over their growing list of commercial disputes and take the lead in revitalizing flagging world trade talks, transatlantic industry bosses warned this week.

The rallying cry in a letter to EU and American leaders came from Gerhard Cromme, chairman of the European Round Table of Industrialists (ERT) and his US counterpart Phil Condit, chairman of the Business Round Table, as leaders from both sides assembled in Washington for their annual summit (25 June).

The pair - also respective chairmen of German industrial firm ThyssenKrupp and aviation giant Boeing - said the two trade blocs have a "special role to play in this critically important" bid to open markets and cut trade barriers.

But they said the EU and the US needed to step up their efforts to clinch a deal - recently dubbed a "once-in-a-generation opportunity" by US Trade Representative Robert Zoellick - before it is too late.

"In just a few months, the World Trade Organization will hold a Ministerial Conference in Cancún, and we are concerned that the consensus- building in advance of this important decision-making conference is lagging.

"Critical deadlines have been missed on key issues such as an agreement on modalities for the agricultural negotiations.

"Yet, bold action on agricultural liberalization, along with strong commitments on tariff elimination and services liberalization, will be essential for a successful round."

Progress on agriculture - one of the key issues at the so-called Doha Round - is jeopardized as member states struggle to reach agreement on how far to reform their farm sectors.

EU and US leadership alone will not break the trade talks deadlock, the bosses warned. But without it the chances of a deal will be far less, they claim.

"If the EU and US are unable to demonstrate a shared commitment, we fear that the possibility of meaningful progress will rapidly retreat from our grasp," they warn.

At the same time, the two should also lead by example when it comes to handling their current trade disputes - ranging from the EU's moratorium on approval of genetically modified products to American steel tariffs.

"We believe that the EU and US should redouble their efforts to resolve trade disputes through negotiation.

"Appealing to WTO dispute panels should remain a measure of last resort."

The message from the heads of two of the world's most powerful business bodies was also supported by other groups including EU bosses' body UNICE, and its Japanese counterpart Nippon Keidanren.

ERT representatives met Commission President Romano Prodi on Monday to discuss their concerns before the Italian left for the vital conference.