EU-US ponder 2008 target for conclusion of trade talks

The EU and US could set a new target of early 2008 to conclude talks at the World Trade Organization (WTO).

According to a draft declaration for the 30 April EU-US summit, the two trade giants would pledge to finalise the Doha round of WTO talks early next year.

That would mean concluding talks before the end of President George W. Bush’s term and before the final stage of campaigning in the US presidential elections, scheduled for 4 November.

Negotiations on the Doha Development Round began in 2001, but have faltered because of differences over how far the EU and the US should cut agricultural subsidies, a key demand of poorer nations.

According to the draft declaration, which will be discussed by EU foreign ministers in Luxembourg on 23 April, the two sides will now declare that concluding the round is the number one priority in transatlantic relations.

"Our overriding priority is to work together to bring the WTO Doha Development Agenda to a successful conclusion by early 2008 at the latest," says a draft proposal put forward by the EU.

But even within the EU there is some opposition to the text.

France, which itself is close to presidential elections, has called for the summit to avoid mentioning early 2008 as a deadline for talks. Paris also wants to play down Doha as a priority in transatlantic relations.

Diplomats say that stance is linked to France’s opposition to making further concessions on farm subsides ahead of the French elections.

According to European Commission figures, around 45% of French farm revenues come from EU subsidies.

In the current draft of the declaration, the EU and the US would pledge to consolidate "substantial agricultural reform programmes" and "create new market access opportunities for developing nations".

Other EU member states have also raised objections to the text. Hungary has called for the Union to ensure that the price for a deal is not too high, arguing that any agreement must be balanced.

This echoes calls from developing countries, led by India, that have insisted that the Doha talks focus adequately on development rather than "artificial deadlines".

Reaching a deal in early 2008 will also depend on Bush’s ability to persuade the US Congress to extend his authority to make trade deals under an expedited procedure.

The so-called Trade Promotion Authority (TPA) runs out on 30 June this year.

According to Christophe Bellmann, a programmes director at the Geneva-based International Centre for Trade and Sustainable Development, Bush and his EU counterparts could be trying to show Congress that there is good reason to extend the TPA as "there is a real chance for a deal".

"I don’t think anyone is seriously thinking about simply renewing trade promotion authority," said Bellmann, "the political situation in the US is too complicated for that. There may be a chance of extending it for a limited period to allow WTO members to conclude negotiations."

Democratic Party members say they want to see labour and environmental safeguards woven into future bilateral trade agreements in return for extending the TPA.

Trade negotiators from major agricultural producers - the EU, US, India and Brazil - will meet in the Indian capital New Delhi on 12 April to try to push negotiations forward.

The EU and US could set a new target of early 2008 to conclude talks at the World Trade Organization (WTO).