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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (43542)	5/11/2004 6:04:31 AM
From: LindyBill	Read Replies (2) \| Respond to of 793735

Here is a followup on the EU Free Trade story. The French are furious. EU May End Farm Export Aid, Seeks Trade Talks Boost Mon May 10, 2004 05:06 PM ET By Patrick Lannin and Jeremy Smith BRUSSELS/KILLARNEY, Ireland (Reuters) - The EU said on Monday it aimed to boost world trade talks by offering to end aid for farm exports, a move welcomed by Washington, slammed in France and greeted cautiously by other trade partners. France, a big beneficiary of the 43 billion euros ($50.89 billion) of EU farm aid, condemned the move, which is conditional on other big farm spenders taking similar steps. French government sources also seriously questioned the motives of the two EU commissioners behind the offer, but Germany and the Netherlands backed their move. "We feel that a breakthrough is possible and the EU is ready to do its part," European Agriculture Commissioner Franz Fischler said as he and Trade Commissioner Pascal Lamy presented the offer to help reach an outline trade talks deal by end-July. "All our export subsidies are effectively on the table." Lamy said the United States should take similar steps to end export aids and trade-distorting food aid. Australia and Canada should also reform export trading boards, he added. Negotiators, expected to miss an end-2004 deadline to conclude the trade talks, want to arrive at an outline deal, or framework, by the end of July. A key set of talks will take place in Paris this week. "I hope this will provide a shot in the arm to the overall negotiations," said U.S. Trade Representative Robert Zoellick. He noted an existing U.S. offer to end export subsidies and said Washington was ready to negotiate eliminating the subsidy portion of its multibillion-dollar export credit program and to discipline the use of food aid. Zoellick said others should also be ready to end monopolies in state trading enterprises and differential export taxes, but Canada said its Wheat Board, a government-backed farmers' export monopoly, was off limits in the negotiations. But the strongest reaction came from France. Agriculture Minister Herve Gaymard, speaking at a meeting of farm ministers in Ireland, said Lamy and Fischler had overstepped their negotiating mandate. French government sources went further, highlighting the fact that both men's jobs ended in October and linking this to "sudden urgency" of their farm initiative. Other sources said Lamy had met French Finance Minister Nicolas Sarkozy on Friday night to inform him of the plan and that the discussions had been "heated." But German Farm Minister Renate Kuenast said the EU move was an important signal, while the office of Dutch Economy Minister Jan Brinkhorst said in a statement he was very pleased. Agriculture has been the key to unlocking the world trade talks, which economists say could boost long-term world growth, and the EU has been under pressure to make a substantial move. The EU is the biggest user of export aids, which allow the bloc's expensively produced farm products to compete with cheaper goods from nations like Brazil and Australia. "I think it helps. I do not want to sing victory but they are giving positive signals," said Mexico's WTO ambassador, Eduardo Perez Motta. His country, along with India, Brazil and China, is a part of the Group of 20 developing nations, which united to win gains from richer trading states, particularly on farm issues. Another WTO diplomat said the EU offer had already been discounted. Latin American diplomats were also suspicious the EU's offer to give poor countries more flexibility in meeting WTO commitments was an attempt to split the developing country camp. (additional reporting by Richard Waddington in Geneva, Doug Palmer and Richard Cowan in Washington and Brian Love in Paris) ($1=.8449 Euro)