News Releases

No. 29/06
April 26, 2006

TRANSCRIPT OF EU TRADE COMMISSIONER PETER MANDELSON'S REMARKS TO JOURNALISTS ON DDA, BRUSSELS, 26 APRIL 2006

Today in Brussels, EU Trade Commissioner Peter Mandelson briefed on the EU's position and prospects for the ongoing Doha Development Agenda negotiations. The following is a full transcript of his comments:

"In view of recent developments in the Doha world trade talks, and the cancellation of next week's ministerial meeting, the [European] Commission met at 8 am this morning and discussed the European position on the state of the round. The discussion lasted for over two hours. It was detailed and focused on presentations by Mariann Fischer-Boel (Agriculture Commissioner, pictured at right) and myself.

"Not surprisingly, considerable concern was expressed about the chances of reaching agreement. But I want to make this clear: Europe has been instrumental in conceiving, launching, nurturing and sustaining this trade round since 2001, we have kept it on track more than once by making fresh payments into it, and we are not going to give up on it now.

"We want an ambitious but realistic result. We aim to conclude the negotiations this year, although this should not be at any price, and this means we will continue to press for agreement on key issues before this summer.

"I described the underlying difficulties in the negotiations in my speech in Helsinki last Friday. We have problems in analyzing the relative economic value of the offers being made by the different parties. We have not yet agreed on the corresponding weight of offers in agriculture and non-agricultural market access. It is not decided what proportionate effort should be made by developed and developing countries.

"But if you crystallize these differences, they boil down to this:

"In the case of agriculture, both the US and the EU have to go far enough in stripping out trade-distorting farm subsidies and improving market access;

"And in the case of industrial goods, the bigger developing countries are not giving the rest of us the signal we need that they are serious about eliminating their high industrial tariffs and tariff peaks that currently shut out trade.

"Services are no less important but are being negotiated separately, as is the strengthening of world trade rules.

"At the end, we must judge the gains to be had from the completion of the Round as a whole. It is in Europe's economic interest to complete the Round. But there have to be real economic benefits for all: that is the fundamental condition for Doha's success.

"We cannot get to the end result unless there is balanced gain, balanced pain. Not equivalent pain but proportionate. Proportionate between developed and developing countries. Proportionate between agriculture and other sectors. Proportionate between what the EU and the US are doing within agriculture.

"The Doha Round is not a pure mercantilist trade-off between parties. But nor can it be a one-way bargain in which Europe is expected to be the sole or almost the sole banker to get us to closure.

"That's why Europe is prepared to give a lot, indeed to give more than others, but not to give without getting anything in return. That's why Brazil, India, China and other big emerging countries must assume their responsibilities in the negotiations.

"I have had the position of European industry communicated to me loud and clear in the recent weeks: for Europe's far-reaching agricultural sacrifice - and it is real and we will not retreat from it as long as it is contained within the scope of the 2003 CAP [Common Agricultural Policy] reform and our negotiating mandate - we must see alternative economic opportunities being created in return. That is the bottom line re-affirmed by the Commission this morning.

"We all need to be ready to help the Round go further. If the circumstances allow - if key partners put something worthwhile on the table - the EU will be prepared to further enhance our current agricultural offer, as we have already communicated to other negotiators in London in March, and Rio again this month.

"If the US is similarly willing, as reports indicate this morning, to negotiate further on its agriculture offer that is an important advance. I welcome it. I will waste no opportunity to test this willingness in the coming period.

"In conclusion, let me say that the world has much to gain from the Round and much to lose if it fails. Europe will continue to negotiate in good faith as I hope others will do likewise."

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