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Europe Daily Bulletin No. 9197
Contents Publication in full By article 16 / 36
GENERAL NEWS / (eu) eu/wto/doha

Union could increase flexibility of its agricultural offer in terms of market access

Brussels, 22/05/2006 (Agence Europe) -According to an unofficial source, at the EU-Latin America Summit of 12 May, Trade Commissioner Peter Mandelson is said to have told the Brazilian Minister for foreign affairs and chef de file of the G20 emerging countries, Celso Armorim, that he could improve Europe's agricultural offer by agreeing to increase the average reduction in Community customs duty on imports of agricultural products from 39% (as per the offer of 28 October) to nearly 50%. Mr Mandelson's gesture would only be confirmed if the emerging countries of the G20 make the concessions called for by the EU on industrial products (NAMA). This will also help to increase pressure on the United States, which has been called upon by the other countries of the WTO to decrease its internal agricultural support further. Signs of "new flexibility" on the part of Europe have also been referred to in the American bulletin Inside US Trade dated 19 May, which says that Mr Mandelson had sent out signals that he could improve the Union's current offer in terms of market access and reduce its demands on the developing countries with regard to reductions of their customs tariffs on manufactured goods. According to the sources quoted by Inside US Trade, Mr Mandelson may be able to increase the average reduction of Community agricultural tariffs to nearly 50%. However, the EU would keep the number of its sensitive products at 8% of the whole of tariff lines, subject to a reduction in duty below the average reduction of customs duty, in exchange for the opening up of import tariff quotas. Speaking to EUROPE on Friday, Peter Power, spokesperson to Mr Mandelson, simply repeated that the Union would be inclined to review its agricultural offer if the G20 agreed to make the concessions expected on NAMA. On the same day, Mr Power told Reuters that "under the appropriate circumstances", the Union could "move towards the G20 proposal, but could certainly not agree to it in full". It is worth noting that the G20 is demanding that the Union increase the average reduction of its agricultural customs tariffs to 54%. On the sidelines of the ministerial Council of the OECD, to be held in Paris on 23 May, Mr Mandelson is to meet the Director General of the WTO, Pascal Lamy, the American Trade Representative, Rob Portman, and Mr Amorim.

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