Mandelson issues warning ahead of crunch WTO meeting
HONOR MAHONY
15.07.2008 @ 09:17 CET
EU trade commissioner Peter Mandelson has called on member states to present a united front in crucial world trade talks next week as national governments divide into neo-liberal and protectionist camps ahead of the negotiations.
The commissioner's call comes after French President Nicolas Sarkozy in an unusually direct attack earlier this month accused Mr Mandelson of contributing to the Irish rejection of EU Lisbon treaty through his trade stance and of making too many promises on reducing subsidies for EU farmers.
"If, after seven years, you cannot complete a trade round, what does that say for your prospects of reaching a deal on climate change?"
(Photo: European Community, 2005)
According to the International Herald Tribune, he told a gathering of journalists on Monday (14 July) that the 27 member states should make a "show of unity" and noted that France is "very mindful of its responsibilities as the presidency of the EU."
Mr Mandelson, who is able to negotiate trade issues on behalf of member states but only within the remit they give him, warned that should the international talks on liberalising world trade talks fail, then there is a strong chance that other multilateral talks - such as those on climate change - will also fail.
"If, after seven years, you cannot complete a trade round, what does that say for your prospects of reaching a deal on climate change?," he is quoted as saying by the IHT.
A concrete sign of how the EU will approach the talks beginning in Geneva next week is set to be given this Friday (18 July) when EU trade, development and foreign ministers meet to prepare the talks.
France, a strong defender of the Common Agriculture Policy, from which it benefits the most of all member states, has been trying to win Spain and Italy to its side ahead of the Friday meeting.
However, Mr Mandelson has support from other countries who favour more liberalisation. In an open letter to the International Herald Tribune on Monday six member states - Britain, Sweden, the Czech Republic, Estonia, Latvia and Slovenia - noted that the EU had agreed that it wanted an ambitious deal during the WTO talks and urged a more united voice.
"The European Union's ability to remain a driving force in this crucial phase is dependent on our capacity to act in coherence," said the letter signed by trade ministers from the six countries.
"We cannot afford to miss the chance to counterbalance the present negative trends in world economic affairs. The credibility and respect of the whole multilateral trading system must be maintained," it continued.
For their part, EU farmers have also been complaining ahead of the talks suggesting that the terms of the deal currently on the table would result in over half a million job losses in Europe as well as costing billions of euros - way above the European Commission estimate of €18 million.
"An agreement would mean huge losses for European citizens and scarcely anything in terms of gains." Jean-Michel Lemetayer, the president of European farmers' lobby Copa, acording to AP.
Copa is accusing Mr Mandelson of not securing enough concessions from developing countries to allow Europe to export electronic goods and services in return for allowing more farm goods from these countries into Europe.
"We challenge Peter Mandelson to name some concrete benefits he has gained so far for European citizens as a result of the negotiations on industrial goods or services," said Mr Lemetayer.
The talks starting on 21 July are widely seen as a last attempt to secure an international trade deal. No agreement next week risks seeing the talks strongly delayed as the US heads towards its presidential election period.
