Luxembourg, 26/04/2004 (Agence Europe) - After having taken stock of the state of progress of trade talks before the General Affairs Council on Monday morning in Luxembourg, Commissioner Pascal Lamy stressed during a press conference that negotiations in the context of the Doha Agenda, those with Mercosur and with Russia had gone through a period of intense activity during recent weeks. Drawing a parallel with the activity of a volcano (which goes through three phases), Mr Lamy felt that, on these three trade issues, we are in the "smoking" phase just before eruption.
As far as the multilateral negotiations at the WTO are concerned, Pascal Lamy mainly insisted on the existence of an agreement for using the window of opportunity that ends with the summer and the presidential elections in the United States. He recalled that the EU is ready to move on agricultural issues if the United States does the same for internal subsidies and the Asian countries on market access. Progress in agricultural talks remains linked to progress in other fields under negotiation.
The bilateral talks last week with Russia made it possible to move forward although there are still problems concerning industrial prices (he cited cars, aircraft and spirits), energy (although he did recognise that President Putin had given positive signals) and over-flight of Siberia by European companies. Russia hopes to settle talks during the summit end May, Mr Lamy recalled, who, however, refused all commitment at this stage. He said the next bilateral round of talks will be held around 10 May and that, after that round, he would take a stance.
On the subject of negotiations with Mercosur, Pascal Lamy recalled that this was the greatest free trade agreement negotiated to date. He explained that the two parties continue to adjust their offers with a view to a "political agreement" during the meeting in Guadalajara on 28 May, which would allow an agreement to be concluded in October. To keep to the agenda, which has nothing imperative about it, the Commissioner believes it is essential for Mercosur to present an offer of sufficient quality on market access. This offer must be "equivalent" to the EU's offer even if Mercosur is able to benefit from a dose of asymmetry, mainly in terms of timetable. (See EUROPE of 24 April, P.9).