Brussels, 29/05/2006 (Agence Europe) - Under pressure for many months on the Doha Round front, the European Union finally has a moment of respite. It is now the USA, since the OECE Ministerial meeting on 23-24 May in Paris (EUROPE 9199), which has become the object of targeted criticism. Opening the Informal Agriculture Council on Monday in Krems, the Austrian Minister and Acting President of the Council, Josef Pröll, explained that it was now up to Washington to “shift” on its offer on agriculture to help push Doha negotiations forward (see other article page 12). Mr Pröll affirmed that, “the US has to shift, we are not going to change our position” on agriculture, despite the declaration of intention made on 23 May by Commissioner for Trade, Peter Mandelson, who provided assurances that the Union could make its position on the agriculture dossier more flexible. The Commission, which is currently proposing to reduce its customs duties on agricultural imports by an average of 39%, would be prepared to move towards meeting the proposal from emerging G-20 countries demanding a reduction of 54%. According to several concurring sources, the improved proposal for an average reduction in Community agricultural tariffs could reach 50% (EUROPE 9197). One unofficial source claimed that the Commission wanted to keep 8% of its 1200 agricultural tariff lines protected from an even more severe cut in custom duties (on sensitive products), but could envisage bringing this proportion down to 5%. Mr Mandelson's declared intention delighted several Union partners, particularly Australia, the head of net agricultural exporting countries in the Cairns Group. The Australian Minister for Trade, Mark Vaile, welcomed the “very positive initiative” conferring the Union with “the leadership” of the Doha negotiations.
The USA has dismissed this sign of openness from the Europeans, with a slight of hand. Last Wednesday the US Designated Trade Representative Susan Schwab asserted that the Doha Round would not go forward with gradualist approaches, such as making proposals that are way off target, more flexible or indeed by refusing to lower customs duties. On the same day, one member of Schwab's team, Jason Hafemeister, indicated to AFP that he thought, “Europe can do more. It doesn't need these high custom duties it is hiding behind”. It is, however, Washington who is now the target of accusations by the Union and several of its partners at the WTO of not having come up with any proposal on internal subsidies and for having put the Doha Round in danger. Last week in the columns of the Tribune, international trade specialist at the University of Columbia, Jagdish Bhagwati, said that the USA was putting forward an extremist position by demanding their partners a very large opening up of their markets, which put the Round in danger. He also accused the US Congress of increasing protectionism because it was now up to the USA to shift and renounce their radical stance, by reigning in their lobbies. Visiting Brazil last Thursday, French President Jacques Chirac declared, during a press conference with his Brazilian counterpart, Lula da Silva, that, “it is the USA that has the key to unlocking the problem…There really isn't any dispute between emerging countries and Europe on the question of agricultural subsidies…Europe has done everything it should do and could do. The fundamental problem is Washington's position”. Luzius Walesa the Swiss Ambassador to the WTO and head of net agricultural importer countries in the G-10 (Switzerland, Japan, Norway and South Korea) accuses the USA of putting a brake on pushing the Doha Round forward. In the Swiss newspaper Sonntags Zeitung on 28 May, Walesa asserted that, “Doha negotiations will probably not be finished next December because the USA will not be in a position to make substantial concessions this year, unless there's a miracle”. He added, “the agriculture question remains the plat de résistance” and that “two more years will be needed to conclude the Round”. Doha negotiations will, however, be in a very delicate situation if they are not completed before mid-2007 when the Trade Promotion Authority Act expires. This law give the US executive special powers in trade negotiations and obliges the Congress to accept or reject these negotiations outright without being able to amend them.