French claim EU has erred tactically
A clear majority of member states backed the offer to abolish farm export aid to help unblock world trade talks, leaving France isolated.
"How can Europe protect the Common Agricultural Policy through to the end of WTO talks if it gives a signal of unilateral disarmament?" said French farm minister Herve Gaymard.
He warned that the EU risks "paying dearly in subsequent negotiations, because it would have to choose between eliminating its export subsidies and the degree to which it opens its markets."
The proposal was enthusiastically supported by Britain and Germany, with backing also from the Netherlands, Sweden, Austria, Denmark and Luxembourg.
There was only limited support for the French stand, from Belgium and Italy as well as Slovakia and Cyprus. Spain seemed to be leaning towards the French position but did not take a clear line.
Minister Joe Walsh, in the current EU presidency chair, expressed the Dublin government's "full support for an initiative to restore momentum", but he had "concerns about the timetable".
Agriculture Commissioner Franz Fischler said the Commission proposed the elimination of export subsidies on condition that other members of the World Trade Organisation did as well.
"A move needs to be made to kickstart the talks again and I believe it is incumbent on the EU to make that move," said Minister Walsh.
Noting that to take effect the proposal required "parallel moves" from the EU's trading partners, he said: "To that extent, I think there is a general welcome for the initiative because what the EU does not want is to be on the receiving end for blame or deadlock in the talks."
But French Prime Minister Jean-Pierre Raffarin has warned the EU to stick to its mandate in international trade negotiations, and he said he would make this clear this week to European Commission president Romano Prodi.
French President Jacques Chirac has also indicated reservations about the offer to abolish export subsidies.
US trade representative, Robert Zoellick, said he hoped that the EU proposal would be the "shot in the arm" needed for WTO talks.
"The US will support the move by agreeing to negotiate a parallel elimination," he said.
IFA President John Dillon said the proposals to cut export refunds, while allowing an extra 100,000 tonnes of beef imports into Europe will seriously damage Irish agriculture, because of dependence on export markets for over 90% of our beef and 80% of our milk products.
Dairygold Co-op chief executive Jerry Henchy said 50% by value of their sales was export subsidised, and scrapping refunds would hit dairy markets across the board. But he envisaged a time lag of up to 16 years before the full effects of this would be felt in the diary trade.
