Agri-supports at risk in WTO talks
An earlier draft, drawn up by WTO director general Supachai Panitchpakdi and general council chairman Shotaro Oshima of Japan, included the elimination of farm export subsidies, a key concern for Irish agri-business.
But critics in the EU claimed the document was more vague on other aspects of farm supports, particularly on US programmes, and demanded a redraft. Developing countries also said the farm text was still too soft on the rich countries and gives them too much leeway to protect whole areas of their agribusiness from sweeping cuts in import tariffs.
Mr Oshima warned agreement on a framework would have to be reached by Friday's deadline.
Agriculture is seen as the key issue if a framework is to be agreed ahead of the US presidential election and the appointment of a new EU Commission.
In a bid to kick-start the talks, the EU offered last May to eliminate export refunds, if others do the same in a parallel and equal manner and if a successful outcome on market access and domestic support emerges. US Trade Representative Bob Zoellick, speaking in Washington before heading for Geneva, said achieving consensus is a tall order with 147 players in the WTO.
The US has offered to substantially cut farm subsidies - but only if other countries cut subsidies and open markets. This complements the EU offer to eliminate export subsidies by removing the subsidy element in its food export credit programmes.
But the US will not accept a deal simply for the sake of a deal. There must be substantial new openings for trade in agriculture, goods and services, he said.
EU Trade Commissioner Pascal Lamy said Europe has made a number of reforms to the CAP and has tabled proposals for the trade talks. But there are negotiating limits and he has a mandate from EU member states and the European Parliament.
"We are ready to go quite a long way. I think what we propose for the elimination of export subsidies on our side is a signal of strong commitment for us. But we cannot put our farmer exporters, for instance, at a comparative disadvantage with others who would still keep tools of this kind which do distort trade," he said.
EU Farm Commissioner Dr Franz Fischler said the EU will negotiate constructively.
Agriculture and Food Minister Joe Walsh said Ireland, as a major exporter of agricultural and food products to non-EU countries, is particularly dependent among the EU member states on the continuation of export subsidies in order to remain competitive on export markets.
He said he will be seeking a balanced agreement and is absolutely determined that agriculture will not be sacrificed for an overall WTO agreement.
Irish Creamery Milk Suppliers Association president Pat O'Rourke said 20% of Irish beef exports and 30% of dairy exports are to non-EU markets. If export refunds are abolished, Irish exporters will not be able to trade with these markets and it will impact directly on farm incomes.
