Brussels, 24/10/2002 (Agence Europe) - The European Commission is a little perplex about the "ultra radical" and somewhat incoherent position taken by the 17 countries of the Cairns Group regarding agricultural reform negotiated in Geneva in the context of the Doha Cycle. In the search for tactical alliances being played out from bloc to bloc on this chapter, no doubt the most sensitive and polemic of the agendas of the 146, the Cairns Group, like Washington, agrees to put the Union in the hot seat and call for abolition of export subsidies, as well as more than "substantial" reductions in customs duties and internal support. The 17, including Australia, Canada, Brazil, Argentina, South Africa, Indonesia and Malaysia, share a strong community of views and ambition for liberalisation of the agricultural trade with the United States, China and Uganda. This is what they point out in the final communiqué of a ministerial meeting held this week in Bolivia, a meeting attended by "special" guests including US Trade Representative Robert Zoellick and the Director General of the World Trade Organisation, Supachaï Panichpakdi.
If one reads the communiqué, it is obvious that the Cairns' position is very radical and that it will not facilitate negotiations, simply because it goes beyond what was agreed in Doha and some points of their declaration even appear like provocation as they do not correspond to the WTO Agenda, it is stressed on Thursday in Brussels. One also notes, finding it difficult to understand, that the 17 speak of conformity of views with the United States at a time when the United States goes against the dynamic of Doha and the interests of Cairns. "Does this mean they agree with the Farm Bill, is the astonished question raised given that the new US law increases agricultural subsidies by almost 70% instead of reducing them. It is also recalled that this financial allocation will have a very negative impact on the price of certain products such as cotton, highly important for exports from the group and developing countries. Finally, the Europeans do not feel concerned by the Cairns reference to lack of progress since the completion of the Uruguay Round in terms of reducing subsidies and "massive" protections which go on and on in developed countries over and beyond the $310 billion in 2001. "We have reduced our subsidies with trade distortionary effect and we have taken, at our own initiative, measures for opening market access to exports from developing countries", it is recalled, also refraining from blocking the WTO process simply because we are "(still) working on our reform proposals". "Our delays are clear and we shall work constructively to achieve this objective", it is confirmed, with reference to the crucial deadline for finalising the arrangements for negotiations on agriculture at the WTO.