Brussels, 21/01/2008 (Agence Europe) - The Doha negotiations, trans-Atlantic relations and issues of joint interest in trade policy (relations with developing countries and the contribution made by trade to climate policy) were at the centre of the meeting on Monday 21 January in Brussels, between the European Commissioner for trade, Peter Mandelson, and his counterpart, Susan Schwab. Both will be returning to the Davos Economic Forum on 23-27 January where they will participate in an informal meeting on the Doha negotiations, on Saturday (EUROPE 9576).
Addressing the press at the end of the meeting, Mr Mandelson highlighted several bilateral issues on the agenda, particularly that of the possible US complaint at the WTO against Community tariffs on imports of high-tech products (EUROPE 9577). The Commissioner pointed out that the EU was preparing a review of the scope of the 1996 WTO's Information Technology Agreement (ITA) as part of a reclassification of the products affected and the inclusion of new ones, “within the mechanisms foreseen in the ITA itself”. Mandelson also promised to resolve the dispute on imports of US poultry treated with chlorinated water, “as soon as possible”, a dossier he is taking “very seriously”. He also raised the complaint made by European biodiesel producers against US subsidies for the biodiesel “B99” mixture exported abroad (EUROPE 9559). He provided assurances that he would, “investigate and take action on any sufficiently substantiated complaint”.
As part of the Doha negotiations, Mandelson and Ms Schwab reaffirmed the EU and US commitment to conclude the round before the end of the year. He insisted that, “this means moving rapidly towards an agreement on modalities (on NAMA, liberalisation in trade in agriculture and manufactured goods: Ed) by the very early spring”. He also pointed out that modalities should also involve services and that the, “revised chairs' texts must enable the process to move to its next stage and not erode the level of ambition of a possible deal”.
Mandelson and Schwab are also convinced of the need for the EU and US to work more closely together with the major emerging markets. The former underlined the convergence of views between Brussels and Washington on Russia and said that they were both, “interested in seeing Russian in the WTO, and have given a great deal of assistance to Russia to bring this forward and we want to maintain that cooperation between us”. The Commissioner also pointed out that important questions had to be settled. With regard to stormy trade relations with China, Mandelson confirmed the commitment of the EU and the US to dialogue with Beijing. While dialogue was the best way of resolving the problems with Beijing, “other action could not be excluded if necessary,” he warned, however.
On the eve of the adoption by the Commission of a package of measures to combat climate change, Mandelson and Schwab also expressed their concern at a tendency to use the environment for protectionist ends. “Trade restrictions (such as a carbon tax, which he rejects, see EUROPE 9577) are not the way forward - they are not cost-efficient, there is risk of retaliation, and increasing costs for European industry at large,” Mandelson said. “We have been dismayed at a variety of suggestions where we see climate change or the environment being used as an excuse to close markets,” said Schwab, highlighting the need to “work with our colleagues in the environmental area to use trade as a positive contributor to environmental causes … but also to avoid using climate … as an excuse for trade protectionism”. Both also argued for international negotiation as the best way of combating climate change.
Schwab expressed her concern at the threat by France to suspend cultivation of the “MON810” GMO maize. “We are very concerned that consumers are not being given an opportunity to choose but rather that governments are making non-scientific decisions to keep products out,” she said, giving assurances that a large majority of the scientist consulted, and this included some in France, said that GMO maize presented no danger. On 11 January, Paris announced its decision to launch the procedure to suspend the cultivation of the “MON810” GMO maize produced by US firm Monsanto, by activating the safeguard clause with the EU following the precautionary principle against a backdrop of controversy over GMOs. Schwab was also critical of European resistance to GMOs. “We all responsibility for the health and safety of our citizens, and clearly that is the first priority for all of us, but in the case of biotech there is clear scientific evidence that this is not bad,” she said. Last week, the US temporarily suspended its complaint to the WTO, with the deadline set for the EU to comply with WTO decisions having been reached. In February 2006, a WTO arbitration panel decided that the de facto EU ban on GMOs was not compatible with international trade rules. (E.H.)