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Europe Daily Bulletin No. 8060
Contents Publication in full By article 19 / 26
GENERAL NEWS / (eu) eu/wto

Pascal Lamy believes new round of negotiations should cover both trade liberalisation and new rules

Brussels, 01/10/2001 (Agence Europe) - At a conference organised by the "Confrontations" club on Thursday, Commissioner Pascal Lamy pointed out that there would be many points on the WTO Doha Summit agenda. He pointed out that the European Union wanted to stimulate a broad agenda including a trade and investment liberalisation round "to meet the needs of developing countries and our exporters"; but also a round that would "define new rules, clarify existing rules and how the WTO fit in which other international bodies like the ILO, the Codex Alimentarius and those in charge of the environment". He summed up that the key to sustainable development for the entire planet lay in a combination of opening up the markets and implementing multilateral rules. He then outlined the EU's position:

Market access: Mr Lamy said that the EU would be trying to sharply cut customs duties in all areas, both for industry and agriculture. The Uruguay round made important progress in this area by cutting the highest tariffs and the progressive increase in customs duties. The EU has reduced tariffs, noted Mr Lamy, to zero for around 40% of imports and had cut their general level to 3.6%, adding that the EU would have to comply with the reform of the Common Agricultural Policy (CAP). He hoped reforming the CAP would enable the EU to take an advanced negotiation position in the trade round by improving access to the EU market and reducing national aid and export subsidies, as long as the EU's partners make a similar effort in terms of their own agriculture aid measures and that the EU's basic non-trade considerations are taken into account (the environment, the rural landscape, the quality and diversity of food and daily life in the countryside).

Development: While access for developing countries to global agriculture, industry and services markets is of fundamental importance, it is far from sufficient in terms of securing their true participation in the global economy, stressed Mr Lamy, recommending a strengthening of their capacity to make use of the opportunities by helping them adopt multilateral standards to ensure they can actually access EU markets. Technical assistance combined with trade should form part of the multilateral trade system. Assistance should already be provided for the new negotiations so that developing countries can take part in them efficiently and defend their interests, but such assistance should also be extended to the implementation of existing and future agreements, opined Mr Lamy. The Commissioner noted that the implementation of existing WTO agreements has been difficult for many of the poorest WTO members. Although a long-term solution to this problem can only be found by strengthening the countries' capacities, Mr Lamy said that important decisions had to be taken before and by the Summit to facilitate the implementation of the Uruguay Round in developing countries.

New rules: He felt that some developing countries were worried about entering new negotiations when they are having difficulty absorbing earlier commitments, but is convinced that extending negotiations to competition, investment and facilitating trade would be to the advantage of all members, starting with the weakest. In general, strengthening WTO rules will help make globalisation, today especially, a fact, a state of law. This broader legal basis for international trade can only be to the advantage of public and private players by providing them with greater security and predictability.

On investment, the EU is proposing a WTO agreement whereby all members can commit themselves, in their internal regulations, to respect the basic WTO principles of non-discrimination, transparency and predictability. This should be done on the same basis as the services agreement - positive sector by sector commitments which will allow countries the freedom to regulate economic activity at home in line with their development aims. Competition is even more important in Mr Lamy's opinion from a "systemic" point of view: a fair level of competition at home is as important as a cut in tariffs at the border. A multilateral framework competition agreement would flesh out a similar agreement on investment to help countries build efficient market structures and respond to companies' anti-competition practices, at home and abroad.

Approximate collective preferences: He feels that it is important that the application of non-trade considerations (such as cultural diversity and identity) be recognised for public services, food safety, the environment and, of course, agriculture.

Mr Lamy concluded that the WTO should be strengthened to be better able to fulfil its double role as a trade liberalisation body and a global economic governance authority (among other things).

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