News Release

Pascal Lamy
No. 77/04
May 14, 2004
“THE WTO VOLCANO SMOKING AGAIN”
EU
TRADE COMMISSIONER
PASCAL LAMY: COMMENTS FROM THE PRESS CONFERENCE AT THE OECD MINISTERIAL IN
PARIS, 14 MAY, 2004
“Trade negotiations are like volcanoes: there are three phases. They
can be sleeping, smoking or erupting.
"After a period of relative calm - with only some underground activity
- the
WTO volcano is 'smoking' again, and the smoke is pretty dense;
"What do I mean? Concrete progress is being made to narrow the differences;
mood is positive and constructive.
"Clearly a lot of technical work still needs to be done and we should
not underestimate the task but the interventions this morning clearly show a desire
from all present to work hard, move and make compromises so that by July we can
complete 50% of the
Doha Agenda. We will have an opportunity to discuss in more detail this afternoon
at a meeting of WTO trade ministers.
"Where is the EU on this one?
"Franz
and myself thought last week it was important to give a clear signal of our will
to contribute to move the talks forward; hence the letter we sent to all trade
Ministers; not sure I can say this created an earthquake but it was sufficient
to shake the mood and create a sense of urgency.
"Where are we now: let me briefly start with agriculture.
Franz will go into the details now. I think we have a visible architecture for
export subsidies and domestic support, whereas on market access we are only at
the 'design stage'; the different designs which where on the table have been shot
at and there is no ownership of this at the moment. We need to be ready to look
at other options. The EU is open to look at other options. We are ready to do
so - provided all our interests are addressed. A 'composite formula' addressing
offensive interests but also covering sensitivities is the way forward.
"Industrial
tariffs: very important for us and for the rest of the WTO membership;
trade in industrial products: over 80% of world trade in goods. We have to
be ambitious here. The wording of any agreement must not create loopholes which
mean its effectiveness is reduced.
"Services:
they have to remain in the July picture. For us, but also for
developing countries whose interest in mode 4 (temporary movement of professionals)
is growing.
"On Singapore Issues, the picture is becoming clearer; emerging consensus
on Trade Facilitation - there is clearly work to do between now and July on the
precise modalities. This is obviously now the only one of the SIs on the front
burner. We regret this but have to be lucid at this stage in order to move forward.
" Finally on development, the weakest economies
need clear 'reassurances' that the price they need to pay in this Round is extremely
modest. We need to give this message now, and not at the end of the negotiation
- this will make things clearer and easier. This does not mean that SDT and Implementation
should be disregarded, and I know these are very important issues for the G20.
But the weakest economies should receive a very clear signal in July.
"We have a lot of hard work in front of us; we will continue to move
these talks forward in the same spirit we have done so far: open and constructive
and we are happy that others have also signaled their willingness to move.”
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Press Contacts:
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Anthony Gooch
202-862-9523
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Maeve O'Beirne
202-862-9549
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