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Europe Daily Bulletin No. 7909
GENERAL NEWS / (eu) eu/international trade

Informal dinner for EU external trade officials Sunday evening in Brussels

Brussels, 22/02/2001 (Agence Europe) - The Union's officials responsible for external trade will be meeting for an informal dinner organised by the Swedish Presidency, on Sunday 25 February, on the eve of the General Council (see previous pages). No decision is expected from this kind of meeting, but it is obvious a strong sign will be given by the Fifteen on Third World concerns, which will be a major contribution to efforts made by Commissioner Pascal Lamy and others to promote the launching of a new round of multilateral trade talks in Qatar this autumn. This is all the more so as the person responsible for common trade policy will be flying to Washington within ten days. For now, all eyes are riveted on the rest of the American continent.

After the Seattle fiasco, which at least made it possible to confirm the weight and growing importance of developing countries within the multilateral system, it has become increasingly apparent on the European side that the conducting and conclusion of a further round of talks could only be reached by explicitly integrating the interests of developing countries, for all sectors and at every stage in the process. The "bridges" that Mr Lamy said he wished to build between the Geneva institution and the Third World, one year ago, must now be consolidated and there is only eight months in which to do so, before the ministerial Conference in Doha which, no doubt, will be last opportunity for many years to launch a trade round. It is an observation that a growing number of players on the world's trading scene share today, as reflected in talks held last month on the fringe of the Economic Forum of Davos (see EUROPE of 3 February, p.16). Already, the announced relaxation in the Community position is reassuring and the Europeans even note a "thawing" of the atmosphere in Geneva, which Mike Moore, WTO Secretary General, calls a "change of mood".

EUROE has reason to believe that the "new" European approach - that still needs the seal of approval of the Fifteen, could consist in aiming at a three-year round that ideally would begin in the autumn, around an agenda substantially reflecting the priorities of the developing world, be it in sectoral negotiations already scheduled, on market access, on the drawing up of rules, etc., all that while maintaining on the agenda investment, competition, and the environment, but in a more flexible manner and without for that removing all substance from them. On the first two chapters, both negotiations could be launched and ended at the same time. Everyone would be invited to take part, also having the freedom to subscribe to the outcome of the process or not. Some partners are not as hostile as they claim out loud to the idea, sources close to the Commission point out. The creation of a world supervisory authority for competition is one of the major problems, the same well-informed source tells us, adding that the others also share the concerns of the Europeans that the lack of a common stand on trade policy would within 5 to 10 years lead to a veritable "anti-dumping war". On the environmental aspects of trade, the goal should be maintained of securing multilaterally agreed clarifications, rather than a change to existing trade rules, including as regards consumer safety. It obviously remains to be said out loud that this ambition is in no way protectionist and that the results of negotiations can in no way serve a pretext for arbitrary discrimination or for any form off disguised trade restriction, while taking account of the concerns of the third world for access to the markets of countries with stricter environmental standards.

Another major difficulty in the talks with the developing countries, the social aspects of trade the social aspects of trade for which the aim would be to tackle them in the framework of a joint forum involving the WTO and the ILO, as well as other competent international organisations, in order not to circumscribe the issue to the simple respect of fundamental social standards, but to also cover the problem of social development, particularly chronic in the Third world. The idea, which is already brewing in some countries, notably in Asia, would be to launch this structured dialogue before the Doha Ministerial if possible, without excluding reflecting it in the general provision of the trade policy. Concerning textiles, the Round could broach the tariff issue beyond the deadlines already foreseen for 2005. Finally, the approval of the "Everything but arms" initiative by Monday or either way rapidly, without excluding the three sensitive sector (bananas, rice and sugar) - is out of the question, says the Commission side - would no doubt be welcome.

There also remains another "bridge to build", with the United States, where the new Administration has not yet clarified its intentions for the future round. Commissioner Lamy should look at it as of next 8-9 March, when he will meet his counterpart Mr Zoellick and other partners for the future guidelines of the United States policy in this field, including Congress. Though the question will no doubt remain for a long time unanswered, feel Brussels, replying to the new Administrations relatively manifest regional focus.

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