Franz Fischler

No. 48/03
July 31, 2003

WTO/AGRICULTURE: EU FARM COMMISSIONER CALLS MONTREAL MEETINGS "USEFUL," SAYS US AND EU MUST LEAD BY EXAMPLE 

The European Union’s Farm Commissioner Franz Fischler made the following statement after the World Trade Organization Mini-Ministerial meeting in Montreal yesterday:  

“This meeting was useful, productive and to a certain degree a fresh start of the final stretch to Cancun. But there is no reason for complacency. Some weeks of hard, hard work lie before us. But, there is no reason for gloom and doom neither. And I tell you why: 

“For the first time, we have seen WTO members narrowing down their huge gaps. Admittedly, this was no breakthrough, but rather steps in the right direction. Reason seems to prevail that camping on extreme, unrealistic positions does not lead anywhere.  

“We will continue our discussions how to converge in Geneva. The EU will also pro-actively pursue its talks with our American friends. The two main trading blocks have to lead by example and find common ground. But we know perfectly well that it is not good enough if the two biggies dance the waltz, in the WTO it takes 146 to tango. We do not want another 'Blair House', at the end we need a 'Full House' where all 146 countries are on board. Consequently, we will conduct our talks with the US in a fully transparent way, so that the other 144 WTO members do not feel left out.  

“Our WTO partners have called for leadership, now they get leadership. Backed by a radical farm reform at home, the EU has jumped from the bandwagon into the driving seat of these farm talks.  

“This is why yesterday Pascal and I have put concrete proposals on the table which prove that Europe is ready to go further, to move substantially. We are ready to deliver a huge cut in trade distorting domestic support of 60%. This goes far beyond the ambitions of the Uruguay Round. Now it is down to other major subsidizers to match this offer. 

“We are not only offering to substantially reduce budget outlays for export subsidies. We have also said that Europe is ready to completely eliminate export subsidies for certain products, provided that other forms of export subsidization, such as export credits, abuse of food aid and State Trading Enterprises are equally disciplined. Another substantial move from our side.  

“And we are ready to cut our tariffs by an average of 36%. Further more, we have for the first time indicated that we are ready to open or expand tariff rate quotas for certain sensitive products.  

“Considering our ambitious proposals for the other two pillars, a more than respectable offer, I would say.  

“Obviously, we also need to see more on non-trade concerns, especially a better protection for regional quality products from being pirated.  

“And I think it is high time that ALL developed countries follow the EU's lead and give completely quota and duty free access to the poorest countries in the world.  

“All this goes to show that Europe is ready to deliver on its promises, simply because we want this Round to happen. This is why we have taken the initiative in Montreal, up to the others now to do the same.”