Haggling over agriculture delays Egyptian trade deal

Date: 25/06/1998

By Mark Turner

HOPES that the EU would go some way to meeting Egyptian demands for access to European agriculture markets this month are fading.

Negotiators say too many issues remain unresolved to move into a final phase of talks on a wide-ranging trade deal.

UK diplomats had planned to call on Union foreign ministers next week to allow greater access to Egyptian farm produce, after an optimistic Euro-Mediterranean meeting in Palermo.

However, a lack of movement over recent days has kindled EU fears that if it compromised now, Egypt might see the decision as a harbinger of even more flexibility to come and hold out for a better deal.

Calls for an EU Association Agreement with Cairo have been held up for two years as both parties haggle over Egyptian rice, potato, flower and orange juice exports.

Although Cairo has considerably moderated its original demands, officials say that there is some way to go before both sides come within striking distance of an agreement.

Further problems have arisen over Union calls for Cairo to readmit illegal migrants entering Europe from Egypt.

The North African state has become a transit point for many Palestinian and Sudanese refugees, and is afraid of accepting responsibility for them.

The Union's standard human rights clause has also become a bone of contention, and Denmark and Greece have raised questions over maritime transport elements in the deal.

Under the circumstances, an agreement now appears unlikely before the summer break in August, adding further pressure to the struggling Euro-Mediterranean partnership.

Nonetheless, officials from both sides say they still hope for a deal by the end of the year.