Washington, 27/06/2003 (Agence Europe) - Unlike the political chapter of their discussions, where significant progress was made (see yesterday's EUROPE, p.5), Europeans and Americans had to restrict themselves to discussion on the trade aspects that appeared on the Summit's agenda this week in Washington, as they were unable to achieve any concrete results on ground that was still shaky if not mined. The result was that there was no joint declaration on negotiations on the Doha Development Agenda, despite European expectations. Neither was there a solution to transatlantic disputes submitted to the World Trade Organisation, except for the announced disagreement between Commissioner Pascal Lamy and his opposite number, Bob Zoellick, before the press on the subject of GMOs and the remarks made by President Bush on the prospect of an anti-subsidy agreement at the OECD in the steel sector, the condemnation by the WTO of US safeguard measures against third country imports being expected for the end of the month of July. After the crisis over Iraq, which was a serious blow to the partnership, there was manifest resolve to highlight what reflects its strength and productivity (see the declarations on launching bilateral talks aimed at creating an open airspace between the two sides of the Atlantic and on the effort made to develop a hydrogen economy), and, immediately after this, to silence those spreading doom and gloom on Capitol Hill and in the media.
Sources familiar with the discussions state that the White House's instructions are clear: - joint declarations are not to be published unless there is something new and powerful to state, but not for what everyone knows already simply confirming commitments again. According to other sources, the White House sought not to distract attention from its main priority: the security chapter. At the end of the day the European and American leaders in turn orally confirmed to reporters that they are working toward the success of the new WTO round and of its ministerial meeting in Cancún in September. Some days after the restricted session in Charm El Sheikh (see EUROPE of 24 June, p.10) and three weeks after that in Montreal, the two giants of the system had nothing to declare on the matter to the rest of the world, all the more as the Union had not had its last word - awaited impatiently by Washington, by both American and European leaders - on the planned reform of Common Agricultural Policy. President Bush, however, promised Europeans that he knows they are faced with difficult choices but that, if they made these difficult choices for their farmers, he would be willing to do the same for US farmers. He said it is in the interest of the global package (Ed.: after the WTO round, where nothing is approved if everything is not approved and where the interest lies in allowing inter-sectoral concessions). Mr Bush said he knows Europeans wish to gain more in other sectors. He is willing, he says, according to those taking part at the meeting, to go to Congress, to call for concessions. Henceforth, European negotiators have a long awaited margin of manoeuvre to allow them to come out of one of the most uncomfortable positions (where European farm subsidies were in the line of fire of a large number of WTO members) in order to take the offensive, tactically speaking, on questions such as the protection of geographic names or the various export subsidy regimes practiced by members of the Cairns Group, and, moreover, improved access to the services and industrial goods markets, protection and framing of investment abroad, the transparency of public procurement, the fall in industrial prices, etc. In Geneva, things are moving forward little by little: a new draft compromise on the arrangements for farm negotiations is awaited from Stuart Harbinson mid-July. The package classifying the very many more or less controversial requests for special treatment and differentiated treatment of developing countries was generally well received by "almost everyone" although the content of the various categories, etc. has still to be defined. On access to medicines, Mr Lamy stressed how urgent it is to reach an agreement and met representatives of the US pharmaceuticals industry to seek to reassure them that intellectual protection of their products would continue.
At the bilateral level, Europeans and Americans essentially confirmed their disagreement on GMOs and, on this basis, the determination shown by the US to call for a panel, whereas Commissioner Lamy insisted that President Bush should cease arguing about famine in Africa in order to promote the cause of genetically modified food. On steel, American safeguard measures will be condemned on all points and, it is said on the European side, it is felt that Mr Bush has sought to prepare the sector with his declaration on Wednesday - they will no doubt appeal and also lose the appeal. As far as the arbitration requested by Washington against European measures after the foreclosure effect on the US market is concerned, the process is "frozen".
"They do not wish to continue, just show their constituencies that they are doing something for the steel industry". On the subject of FSC, three proposals for reform of the American tax code will soon be on the table, and, as some Europeans are already saying, the transitional five-year period proposed by Messrs Rangle and Crane is "unacceptable".