EU could make new WTO offer
He said he may move at Hong Kong, or later, if the momentum of the negotiation were to accelerate. The EU has offered a 46% cut in average tariffs, but this falls short of the 54% called for by the Group of 20 developing countries, and well below the 55 to 90% range of cuts demanded by the US.
Mandelson, due to meet delegations from Brazil, India, and the US on Tuesday, said he would continue to ask trade negotiators from other countries to improve their offers. Any new offer he will make at Hong Kong, or later, will be “obviously within the limits of the negotiating mandate”, he told EU foreign ministers.
According to IFA, WTO proposals already made by Mandelson would lead to an increase in EU beef imports from 500,000 tonnes to 1.3 million tonnes, and a resulting collapse in EU beef prices from €2.80/kg now to €2.30/kg. Irish prices would fall to €2.07/kg (74plb), compared to cattle production costs of €3/kg.
Agriculture and Food Minister Mary Coughlan, and Junior Ministers for Trade and Commerce and overseas development, Michael Ahern and Conor Lenihan will lead Ireland’s delegation in Hong Kong. Irish Government sources believe that if the Hong Kong meeting fails to set a framework for a WTO agreement, the major participants will fall back on bilateral or regional trade agreements.
