Brussels, 31/01/2002 (Agence Europe) - In the context of the 17th session of the EU/China joint committee, held in Brussels on Thursday, Commissioner Pascal Lamy, responsible for trade, and his counterpart, Shi Guangsheng, held a "constructive" exchange of views on the current multilateral and bilateral situation. They then held a "clear, frank conversation" on the immediate suspension of all imports of animal products from China.
"The Chinese party cannot accept this decision" (see EUROPE of 30/01, p.14), confirmed Minister Shi, before the press after the meeting. The embargo, decided by written procedure the day before, "is based on the unilateral decision of European experts" whose "report is not correct as it does not take the overall situation in China into account", he protested. He also criticised the fact that the procedure was hastily closed "without consulting our experts". He said that they could not give a response until 25 January when the decision was already taken. According to Mr Lamy, his counterpart was in fact somewhat surprised by procedures and at any rate by the speed of the procedures taken by the Union to defend itself against possible threats to the "health of Europeans". (…/…)
Mr. Lamy then "explained" to Mr. Shi, who had had talks the day before with the Commissioner responsible for this issue: "I cannot influence the decisions that David Byrne takes (…) There is a Wall of China between him and me". He then stressed, diplomatically, that his role in this affair was limited to "ensuring that our international obligations are properly respected, and that's the case". According to a well-informed source, the minister is said to have offered an "arrangement" to lift the embargo: "put this report aside" to draw up "a new one", possibly having sent inspectors back to China where they "could agree" with Chinese experts on another version of the affair… The Commissioner is then said to have turned him down, refusing to enter into any kind of "manoeuvring" or "political negotiations on an issue of public health", the same source tells us, referring to the "difficulty of getting the minister to understand that we are not in a political negotiation". In an attempt to clam things down, faced with an embargo of which he is not the instigator and which raises hackles in Beijing, Lamy conceded to Mr. Shi that a "joint ad hoc group would be set up to study the foundations of this important embargo". Urging him to look to the future, he stressed that what was "important is that we have an early warning system".
The Commissioner said that his side had also had problems to raise, for example in the services, insurance and telecommunications sectors. He insisted on the fact that "we cannot always agree on everything and the more we work together the more we shall be able to speak frankly to each other". China, which had undertaken to deliver a number of licenses for European operators, is lagging behind the deadlines agreed, which causes concern mainly on the part of Germany. Mr Shi, however, reaffirmed his country's "multilateral and bilateral commitments". "China has pledged to open its market for services and goods and it is implementing these commitments", he said, before going on to explain that "we are consulting the EU to see how to apply our commitments and strengthen our legislation along these lines".
Furthermore, the two officials took stock of the situation regarding the development of trade, which progressed 15% in 2001 compared to the previous year, to reach $76.6 billion, stressed Mr Shi. "This is far more than the rise in global trade", completed Mr Lamy. "This rapid and wide-scale development has created new opportunities" and has been done without problems, continued his counterpart, while Mr Lamy recalled that the Union's trade balance has a deficit of EUR 40 to 45 billion with China, "which is considerable and by far our main trade deficit", he said. He went on to say "for now this does not really worry us given the difference in development" even if the deficit could grow worse in the short term.
Mr Lamy and Mr Shi also tackled a series of questions for "preparing the future", mainly the start of the Doha Round which came up against controversy this week surround the best qualified person to orchestrate the process. However, according to Mr Lamy, the problem will be resolved in a very short while (Ed.: during the evening or on Friday in Geneva). The other points raised concern customs, investment, competition, the financial markets, implementation of the accession commitments in general. That same day Mr Shi was to discuss with President Prodi on the problem of illegal migrants.