EP - Relaunching the Doha Round

On Wednesday morning, addressing Parliament's new Committee on International Trade, Commissioner Pascal LAMY, speaking live via video-conference from Geneva, outlined the EU's position on new framework agreements to relaunch the Doha Round negotiations.

"The EU's trade policy, its structure and issues are changing extremely quickly", noted the Commissioner. "International trade is getting more political, we need to reconcile trade with different cultures and values, ranging from GMOs to environmental protection."

Current state of the negotiations

The framework for further negotiations, to be agreed this week in Geneva, comprises 20 different fields, including agriculture, cotton, non-agricultural market access, treatment of developing countries, trade in services, and trade facilitation. The key challenge said the Commissioner, would be to reach a compromise among the major players - the EU, the USA, the G20 and the G90. Comparing the relaunch of Doha trade talks to "past disarmament negotiations", Pascal Lamy called for further concessions and understanding from the WTO members.

The Commissioner outlined the EU's two-track strategy on the negotiations: "The EU will keep an open approach to trade facilitation, industrial tariffs, trade services where the EU is in a strong position. However, for example, in agriculture the EU wants to preserve its current commitment to agriculture system support."

Balance needed on agriculture

"On agriculture we need to reach a balanced approach", stressed the Commissioner. Commenting on the three pillars of the framework for agriculture - domestic support, export competition and access to markets, he highlighted the need for balance within each pillar and across different countries' positions. The EU, he said, was planning to phase out export subsidies for agricultural products and was calling on other countries, especially the US, to commit to scaling down export support. On the other hand, the US and G20 would like to see more flexibility in Europe's market access rules in sensitive areas of agriculture.

Developing countries, said the Commissioner, were insisting that cotton be one of the first items on the new agenda and that it be dealt with separately. Winding up his speech, Mr. Lamy said "It is in Europe's interest to ensure the relaunching of the trade talks, in a rules-based environment for negotiation."

Erika MANN (PES, DE) asked how the previous disputes during negotiations in the Council affected the Commission's negotiations in Geneva. She also expressed her wish to ensure the EP's voice was heard in international trade talks. The Commissioner pointed out that, under the Treaty, the Council approves the Commission's mandate by qualified majority.

Robert STURDY (EPP-ED, UK) inquired why the Singapore issues, which were so tricky in Cancún, did not receive more weight in the proposed package. In reply, Mr Lamy said he regretted that no explicit consensus was reached, since the developing countries had not demonstrated enough interest and enthusiasm.

Vittorio Emanuele AGNOLETTO (EUL/NGL, IT) was concerned about drug patents and access to drugs for the developing countries, stating that "charity from pharmaceutical companies in this field would not be enough". Mr. Lamy answered that the negotiations on this issue were concluded last year. Currently the countries were taking measures to adapt national legal systems.

Finally, Johan VAN HECKE (ALDE, BE) said there was a need to convince ACP countries to accept the overall package and he queried whether the US was ready to follow the EU's example by scaling down export subsidies. He was also interested in the question of Libya's future WTO membership and asked about the WTO membership criteria. Mr. Lamy replied that it usually took from six to twenty years for a country to negotiate entry into the WTO.

28.07.2004 Committee on International Trade
In the chair: Enrique BARÓN CRESPO (PES, E)

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