Lamy’s softer stance on trade plan wins over governments

Date: 21/12/00

By Simon Taylor

EU GOVERNMENTS have welcomed European Commission plans to soften the Union's stance on a new round of trade liberalisation talks by showing more flexibility towards other countries' concerns.

At a meeting late last week, national experts gave an enthusiastic response to a proposal from Trade Commissioner Pascal Lamy which would allow World Trade Organisation members to opt out of any deals on anti-trust and competition rules and make further concessions to developing countries. "This is a step in the right direction," said one trade official from a northern member state, while another from a southern country described the Commission's new approach as "more realistic".

The paper suggests ways in which the EU should change its strategy to win support for launching a new round of WTO negotiations following the collapse of last December's Seattle talks and increasing opposition to wide-ranging negotiations from Asian and African states. It warns that a new round can only get under way "if the interests of developing countries are more explicitly and firmly integrated in all areas and at all stages".

The Commissioner insists the Union should not abandon its efforts to ensure the new round covers investment and competition rules, but should adopt a new approach which would allow some countries to opt out of the final agreement if they thought the deal was too difficult to implement. "Such an approach would respond to the concerns of developing countries about entering into a negotiation that is beyond their capacity to handle," states his paper.

Lamy adds that the EU should make it clear that it is only seeking to clarify existing WTO rules on environmental standards and not impose new restrictions.

Trade officials said member states had responded positively to Lamy's proposed approach, but some expressed concern that the deal could be of little value if too few nations sign up to it. "We have doubts that negotiations can be managed in the way that the Commission believes in practice," said one.

France and Denmark also argued against any move which would weaken the EU's push for stronger WTO environmental standards, and several delegates were sceptical about the Commission's insistence that the Union should make more concessions to developing countries by further opening the EU's market for farm goods and negotiating on subsidies and anti-dumping rules.

Instead, they insisted, more pressure should be put on the US, with some arguing that the Seattle meeting failed not simply because the interests of developing countries had not been addressed but also because Washington was not prepared to make concessions in key areas such as farm subsidies and textiles.

US officials have described Lamy's initiative as a welcomed effort to boost support for a new round among developing countries, but add that the EU still has "a long way to go". "There is a feeling in Geneva that the process is going backwards unless they do something," said one.

WTO officials also responded positively, saying Lamy's comments echoed the views of WTO Director-General Mike Moore, who has called on all sides to soften their stances.

EU governments have welcomed European Commission plans to soften the Union's stance on a new round of trade liberalisation talks by showing more flexibility towards other countries' concerns.