Killarney decision by EU triggers draft deal at world trade talks

A DECISION announced in Killarney earlier this year by the European Union was hailed yesterday as having triggered a draft deal at the world trade talks in Geneva.

It was revealed at an informal meeting of the EU Farm Council at Hotel Europe in May that Commissioners Pascal Lamy (Trade) and Franz Fischler (Agriculture) had made an offer to kick-start the stalled talks in a letter to the 147 World Trade Organisation member states.

The commissioners indicated that the EU was prepared to move towards eliminating agricultural export refunds if all other parties were prepared to do the same and there was a satisfactory outcome to other issues.

Mr Lamy said yesterday the EU offer appears to have triggered a much needed impetus in the talks which succeeded in Geneva at the weekend. “It is another demonstration that, when Europe stands united, we can punch our weight and, moreover, to the benefit of the entire trading community, especially developing countries,” he said.

Franz Fischler said the deal will boost the world economy, farm trade and the opportunities for poorer countries. It also ensures that other rich countries will follow the EU on its reform path.

Agriculture and Food minister Joe Walsh said the deal protects decoupled direct payments and the essential interests of Irish agriculture in the EU domestic market. It provides for the self-selection by WTO members of an appropriate number of sensitive products which will then be subject to special treatment as far as tariff protection is concerned.

Ireland had already indicated that beef and dairy products would have to be treated as sensitive. The arrangements for sensitive products will ensure that the EU domestic market will be adequately protected from imports from third countries and will remain remunerative for Irish and other producers, he said.

Australian farmers also expressed concern that the agreement allows countries to protect certain sensitive products, leaving the details to be negotiated.

One of their leaders Peter Corrish said he is concerned that countries may be able to get around it, using the new sensitive products classification.

ICMSA president Pat O’Rourke said the agreement, if it is followed through, is going to have a negative impact on the Irish economy. Export refunds account for €230 million on an annual basis.

Final agreement is not expected before December 2005, when the next WTO Ministerial meeting will take place in Hong Kong.