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EU reveals new concession on farm tariff cuts at WTO

21 July 2008, 13:14 CET

(GENEVA) - The European Union is ready to extend proposed cuts in its tariffs on farm produce to 60 percent from 54 percent at WTO trade talks, the bloc's trade spokesman Peter Power said on Monday.

"We're in a position to raise our average tariff cuts from 54 percent to 60 percent. This is a very considerable advance and it is a very substantial improvement and should inject important momentum into discussions in Geneva this week," said Power.

The EU's chief trade negotiator Peter Mandelson had earlier described the 54 percent cut offer as "painful" but a step Brussels was prepared to make to ensure a global trade deal.

"In Europe, this once-in-a-generation effort will be painful. But it is on the table now because of our commitment to this Round and the multilateral trading system. It will not remain on the table indefinitely," the EU trade chief said.

Proposals drawn up by the WTO's chief agricultural negotiator, New Zealand ambassador Crawford Falconer, envisage sweeping subsidy cuts by rich Western countries which have often been accused by developing nations of undermining free trade and pushing their farmers into penury.

The biggest subsidisers will make the biggest cuts, notably the EU which will have to slash its payments to farmers by between 75 and 85 percent.

The latest gambit by Mandelson may well rise eyebrows in European capitals, not least Paris where the trade commissioner is viewed with suspicion as a "neoliberal" who would be prepared to sacrifice France's hefty agricultural sector for the sake of a deal.

French President Nicolas Sarkozy has already accused Mandelson of overstepping his mandate and offering too much on agriculture subsidies.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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