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News Releases
Peter Mandelson
No. 95/05
October 28, 2005
EU INTRODUCES NEW OFFER IN DOHA WORLD TRADE TALKS; CALLS FOR IMMEDIATE MOVEMENT ON SERVICES AND INDUSTRIAL GOODS
Today the EU has brought to the table
new proposals on
agriculture and other areas of the
DDA
(Doha Development Agenda) trade talks to
its negotiating partners in the "Five Interested
Parties" (FIPs). The European Union recognizes that
agricultural negotiations have now entered a critical
phase and these proposals represent a comprehensive,
substantive and credible contribution. The EU proposals
bridge the different proposals introduced by other WTO
Members. These proposals must unlock immediate progress
in other areas of the Doha negotiations, particularly,
trade in industrial products and services, which are
crucial to the European economy. The EU proposals are
fully conditional on satisfactory movement in other
areas of the negotiation. The cuts offered are within
the European Commission’s mandate.
The EU’s
proposals will allow WTO Members to converge on
the middle ground in
agriculture negotiations. The cuts
proposed go further than the EU’s original offer and
significantly further than the cuts agreed in the
Uruguay Round. More importantly, the average cut is
higher and is more uniformly applied in the various
levels of tariffs. In the Uruguay Round, the highest
tariffs received the lowest cuts. The EU’s new proposal
ensures that the higher the original tariff, the higher
the reduction. The proposal is fully within the current
negotiating mandate given to the Commission. However it
is at the outer limit of that mandate.
EU
Trade Commissioner
Peter Mandelson said:
“The EU’s
offer is substantial, offering
new market access in
agriculture and driving down trade-distorting farm
subsidies. We want to move in a way that is tolerable
for the EU’s reforming agricultural sector, and does not
eliminate the preferential access Europe already offers
to some of the world’s poorest countries. Europe’s major
partners need to understand that this offer is
conditional on immediate movement in negotiations on
trade in industrial goods and services as well as in
other areas of the agricultural negotiation. These areas
are important to Europe, and to developing countries and
provide the only route to a balanced Doha outcome.”
 EU
Agriculture Commissioner
Mariann Fischer Boel
(pictured left) said:
“The EU has radically
reformed its agricultural policy.
Today’s new proposals on tariffs respect our commitment
to offer substantial improvements in market access,
without putting those reforms into question. This is a
bold move which will mean big new challenges but also
opportunities for EU farmers. We need to get
something
in return: real, meaningful reforms in other developed
countries; international recognition of our Geographical
Indications; real curbs on other countries’
trade-distorting export programmes; and far-reaching
offers in other parts of the negotiation. The Doha Round
is about much more than just agriculture, and others
must give as well as take.”
The Offer
Conditional on satisfactory movement in other areas, the
EU offer proposes:
-
A 60% reduction in the EU’s highest tariffs. A range of
tariff cuts between 35% and 60% for lower tariffs. A cut
in our average agriculture tariff of 46% - from 22.8% to
12.2%;
-
A maximum agricultural tariff of 100% - as demanded by
developing countries;
-
A reduction in the number of sensitive products
designated by the EU;
-
Reductions in tariffs even for
sensitive products – and
wider Tariff Rate Quotas (TRQs) for all sensitive
products – meaning more market access;
-
A 70% reduction in trade-distorting agricultural
subsidies – as agreed in the EU’s 2003 CAP reform, and
tighter disciplines on Blue Box spending;
-
The total elimination of all agricultural export support
by an agreed date, if others discipline their export
support;
-
Differential treatment for developing countries: higher
tariff bands, lower tariff cuts and a maximum tariff of
150%. No tariff cuts for the 50 Least Developed
Countries (LDCs).
The Conditionalities:
EU proposals in market access are strictly conditional
on further clarification from
other developed countries
on the elimination of their forms of export support. US
commitments on Food Aid and Export Credits are not yet
sufficient. Australia, Canada and New Zealand need to
provide further commitment on the reform of their State
Trading enterprises. The EU also seeks real disciplines
on the most trade-distorting US farm payments (Counter
Cyclical Payments).
The EU proposals are also strictly conditional on the
acceptance by our negotiating partners of a number of
proposals in the negotiating areas of the DDA outside of
agriculture:
-
In trade in industrial goods, the EU wants agreement
before Hong Kong on a progressive formula that cuts into
applied tariffs;
-
In services, the EU wants to see negotiations
complemented by ambitious mandatory country targets for
services sectors to be liberalised – agreed at Hong
Kong;
-
An international register protecting Geographical
Indications (GIs) in all WTO Member States;
-
In WTO Rules negotiations, the EU wants the WTO to
negotiate between now and Hong Kong a list of issues to
be resolved including all major impediments to
international trade created by abusive recourse to
antidumping;
-
In development, the EU wants assurance that there will
be a range of proposals ready for Hong Kong including a
Trade Related Assistance package and agreement that all
developed countries should extend tariff- and quota-free
access to all Least Developed Countries no later than
the overall conclusion of the DDA.
For more information on the EU offer please read
MEMO/05/400 or log on to:
http://europa.eu.int/comm/trade/index_en.htm.
A video clip of the press conference is at:
http://europa.eu.int/comm/avservices/ebs/schedule.cfm
The MP3 audio of the press conference is at:
http://www.eurunion.org/News/press/2005/DohaPrConf.mp3
Further Contact Information
Press and Media Relations
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
http://www.eurunion.org/PressRoom
Tel: 202-862-9552
Fax: 202-429-1766
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