Doha Round Could End Soon
30 May 2007 Boel – the European Economic Union’s commissioner for agricultural and rural development – has described the atmosphere surrounding trade talks at the World Trade Organization headquarters in Geneva as “heavy,” and that “there could be a danger we could all go back from these negotiations very disappointed.”
The main holdup is that the EU and others have urged the US to make more reductions in its farm subsidies, saying that even though US farm program payments are expected to be sharply lower over the next few years, they still can move higher if crop prices fall. Boel has stated that the EU is willing to go beyond a 70% reduction, if other countries will also contribute. The US had proposed a 60% reduction in farm program benefits, but US trade negotiators are unwilling to do more until the EU, India and other countries provide greater market access. Boel said the European Union is doing its part, despite US claims of “stonewalling” on the issue:
“We have proved our commitment to the development again and again in the past through our aid programs, our partnership agreements and preferential trade arrangements such as the ‘Everything But Arms’ agreement in 2001. This agreements mean that the 49 poorest countries of the world are allowed access into the European Union with zero duties and zero limitations in the exports. We are just now negotiating with the rest of the 82 countries that are not among the poorest, the 36 more wealthy countries. We are close to an agreement comparable to what we have done with the poorest countries.” As a result, Boel said, the European Union now imports more agricultural products from poor countries than Canada, the United States, Australia, New Zealand and Japan together.
US leaders seem less optimistic Doha’s prospects. “Nothing on the table looks very good to us at this point,” said House Agriculture Committee Chairman Collin Peterson. “We’re not sure much of anything will happen in the WTO until after the 2008 presidential elections.”
Get The Newsletter Today!
