Europe accused of holding world trade talks hostage

A bloc of agricultural nations that favours free trade has accused the European Union of holding the current round of world trade talks hostage.

The EU should “accept its obligation of leadership,” and consent to lowering tariff barriers and domestic agricultural subsidies, the 17-nation Cairns Group, which is chaired by Australia, said in a statement released yesterday.

Squabbles over access to the EU’s farm market have put the so-called Doha round of World Trade Organisation talks into jeopardy, forcing ministers to scale back their ambitions for a far-reaching trade liberalisation deal by the end of the year.

Trade ministers made little progress during a series of meetings in London and Geneva this week, which were meant to force a breakthrough in the talks that have reached a stalemate ahead of a crucial summit next month in Hong Kong.

“The round is captive to the lack of political will in the European Union to deliver on the Doha mandate for agricultural market access,” the Cairns Group’s statement said. “This cannot be pushed to one side if we are to succeed in Hong Kong and in concluding the round.”

The EU offered last month to reduce its highest agricultural tariff rates by 60% and its average tariffs by 46% – but other WTO members said that would not be enough to revitalise the talks.

The Cairns Group called for the EU to match an offer previously made by the US Trade Representative Rob Portman to cut tariffs by up to 90%.

“The European Union must accept its obligation of leadership,” the Cairns statement said. “Accepting this obligation will enable us to secure and to deepen reductions in agriculture domestic support proposed by the US.”

The Doha round was launched in 2001 in the Qatari capital with the goal of boosting the global economy by lowering trade barriers across all sectors, paying particular attention to the concerns of developing nations. It is already well behind an original December 2004 deadine.

The Cairns Group comprises: Argentia, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, Philippines, South Africa, Thailand and Uruguay.