Chances of WTO deal diminish

THE prospects of a world trade deal being agreed this year have been dealt a serious blow, with Germany moving to back the positions adopted by France and Ireland in defending the interests of European farmers.

German Agriculture Minister Horst Seehofer, who had talks with Minister Mary Coughlan in Berlin earlier this week, said that food scarcity was due to the population explosion and rising living standards in emerging countries.

“It was not because of European Union agricultural policies or to the drive to produce fuel from crops,” he later told reporters from Brussels.

His deputy, Gert Lindemann, said the German ministry shared the view of the French, which assumes the EU presidency in July, that there was no “proper balance” in the trade negotiations and that it would be better to have no deal at all than a bad deal.

“There is no progress on industrial goods and services. At the same time, the EU is giving more and more ground on agricultural issues.

“We believe this is not the right way. We share doubts about whether the US has sufficient flexibility to achieve progress in any area,” he said.

However, Peter Power, the European Commission trade spokesman, said the comments reflected the ministers’ positions as protectors of the farm sector.

“Agriculture ministers tend to defend their constituency and Governments tend to take a broader view of what’s at stake.

“We have said we will not sign a deal at any price, and we will continue to fight for a better deal on industrial goods and services,” he said.

Minister Coughlan said she was very encouraged by the strong German position.

Both ministers undertook to continue to work together and redouble efforts to ensure that the outcome to the trade negotiations did not endanger the European model of agriculture.

Minister Coughlan, who made contacts on the issues with her other EU ministerial counterparts, has also arranged to meet with Trade Commissioner Peter Mandelson in Brussels next Tuesday.

She said she would use the opportunity to outline her dissatisfaction with the current direction of the talks and the “serious difficulties” that could emerge for Irish agriculture.

Minister Coughlan said she and her department have been continuing their consultations with Irish agri-food interests.

She had discussions with beef processors on Wednesday evening on detailed aspects of the trade proposals, and with IFA president Padraig Walshe yesterday.

Fine Gael agriculture spokesman, Michael Creed TD has called on ICTU and consumers to raise their voices in the debate.