Brussels, 02/06/2006 (Agence Europe) - As we recently underlined, the USA believes the new concessions proposed by the Commissioner for Trade, Peter Mandelson, on agricultural market access, are insufficient. The USA, however, has in turn now come under attack from its European partners (EUROPE 9200). In an effort to re-launch discussions, Washington, according to the EU and emerging countries from the G-20, must agree to more substantial reductions in its internal agricultural subsidies, which could pave the way to emerging countries (South Africa, Brazil, China, India and Mexico) making concessions in their manufactured goods sector. On Monday Mr Mandelson told the European Parliament International Trade Committee that without an improvement in Washington's proposal on agriculture there would be no breakthrough now or at any other time because the G-20 (the group of emerging countries) will not move sufficiently on services and industrial tariffs.
With the slim hope of a breakthrough, WTO countries have tacitly agreed to attempt to gain a compromise by the end of June on the “modalities” (figures and other provisions) for agriculture and manufactured goods. According to the time table proposed by WTO Director General, Pascal Lamy, and agreed to on 30 May in Geneva by Ambassadors from member countries, the week of 26 June will be the best “window of opportunity” for some Trade Ministers to attend the organisation's HQ in Switzerland - as was the case in July 2004 - and come up with the political action that would make an agreement on “modalities” possible and which could then be formally approved.
The New Zealand Ambassador Crawford Falconer, who is chairing the Agricultural Committee negotiations at the WTO, is intending to present an initial draft compromise on modalities for reducing custom duties and internal subsidies in the week of 19 June. Until then, technical discussions, which focused on internal subsidies during the week of 29 May, will be dedicated to market access in the week of 5 June and then on export competition from 12 June onwards.