EU hopes for Doha revival

The EU has greeted with cautious optimism attempts by the World Trade Organization (WTO) to restart the deadlocked Doha round of global trade talks.

On Sunday (22 July) Peter Mandelson, the European commissioner for trade will meet EU trade ministers in an attempt to agree a common stance before a week of multilateral negotiations opening on Monday.

Reacting to new proposals unveiled by the WTO on Tuesday (17 July) for sweeping cuts in agricultural and industrial subsidies, Mandelson’s spokesman Peter Power said: "The text provides a useful basis for furthering work on the Doha round, although there are points that cause concern to us. On agriculture and industrial access, they offer a range that we feel is in a realistic zone that we can work with."

France is insisting that stronger demands be made on developing countries to reduce tariffs levied on industrial goods. Agriculture Minister Michel Barnier said on Tuesday that he was worried that proposals on market access could "endanger the economic balance of our farm sector".

An EU trade official in Geneva said, however, that France was likely to "come unstuck" if it made excessive demands, as happened in January when it attempted to limit Mandelson’s negotiating mandate on farm tariffs. "We’ll obviously have a vibrant discussion," he said. "But, I don’t think it’s a foregone conclusion that they [France] will win through."

"We welcome the fact that the texts have come out," he said. "They won’t please everyone, but nobody as far as we know has rejected them, so that’s very encouraging."

If ambassadors to the WTO announce further cause for negotiations at a meeting of the WTO General Council next week (27 July), negotiators are trying to reach an agreement by the end of this year.

The EU has greeted with cautious optimism attempts by the World Trade Organization (WTO) to restart the deadlocked Doha round of global trade talks.