login
login
Image header Agence Europe
Europe Daily Bulletin No. 9071
Contents Publication in full By article 12 / 43
GENERAL NEWS / (eu) eu/wto

Union's commitment to poor cotton exporting countries illustrates its wish to turn "Doha" into development round

Brussels, 18/11/2005 (Agence Europe) - Although the objectives of the ministerial conference of the Hong Kong have been watered down after the breakdown of recent talks between the partners of the WTO (EUROPE 9066), the commitment of the negotiators to make sure that the Doha Round is a development cycle remains intact. Proof of this is that Trade Commissioner Peter Mandelson, supported by his American counterpart Rob Portman, made a suggestion on 9 November that in Hong Kong, a "clear and specific development package be agreed upon independently of the other areas of negotiation". In this context, in Brussels on Friday, Mr Mandelson was to remind the President of Mali, Toumani Toure, of the EU's commitment on trade in cotton in favour of the poor countries, particularly those of West Africa, whose export depend on cotton to a level between 50 and 80%. Under the "development package" it is to support in Hong Kong, the EU will ask the rich countries of the WTO to commit to: -remove all forms of subsidies to the export of cotton; -offer access, at zero rates of customs duty, to cotton exports from the poorest countries (this commitment will also be taken by the emerging countries); -substantially reduce internal support generating considerable trade distortion; -implement these commitments without delay, once the agreement concluding the Doha Round has been signed. It is worth noting that in 2006, 65% of support to European cotton manufacturers will be decoupled from production, and that 35% of remaining aid will have only a negligible impact in terms of trade distortion. Since 2004, the EU has made 310 million EUR available to the worst-hit West African countries (Benin, Burkina Faso, Mali and Chad) as part of a development aid programme. The EU is also to set up a programme to boost the administrative capacities for the management of foodstuffs in the developing countries, with a budget of 45 million EUR, a third of which will go to the cotton sector.

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
TIMETABLE
ECONOMIC INTERPENETRATION