THE WORLD’S biggest powers will meet next month to try to salvage a world trade deal, despite misgivings in Dublin and Paris about the EU’s negotiating position.
World Trade Organisation (WTO) director Pascal Lamy called yesterday for a ministerial meeting to be held in Geneva on July 21st to try to finalise the Doha round of talks. EU officials said the meeting would represent a last-ditch attempt to clinch a deal, otherwise the trade negotiations may not be able to restart until 2010.
“I think it is highly likely that there will now be a ministerial meeting on the dates proposed by Mr Lamy,” said David O’Sullivan, director general of the European Commission’s trade directorate, who is one of the most senior Irish officials in Brussels. “There remains a huge amount of work to be done, but I think it is imaginable that a deal can be done.”
Up to 30 ministers from big powers such as the US, Brazil, India, Australia and the EU are likely to be represented at the week-long meeting. EU trade commissioner Peter Mandelson will represent the union’s interests at the talks, although it is likely that ministers from all member states will meet on the sidelines to monitor the negotiations.
Dublin and Paris have voiced serious concern at the manner in which Mr Mandelson has conducted the WTO talks and are worried he may agree to sell out European farmers. French president Nicolas Sarkozy also blamed Mr Mandelson last week for promoting a No vote in the Lisbon referendum in the Republic.
The key to any world trade agreement relies on the EU and the US signing up to cut the import tariffs they levy on agricultural products from other trading blocks. In return, big developing countries like India and Brazil are expected to agree to open up their markets to EU and US firms in the lucrative services and industrial products sectors.
French trade secretary Anne-Marie Idrac met EU agricultural commissioner Mariann Fischer Boel yesterday to express concern about the negotiations. Minister for Agriculture Brendan Smith told his EU counterparts on Monday in Luxembourg that the present set of WTO proposals did not present an appropriate basis for a deal at this time. Last month, Dublin and Paris said there was no basis for calling a ministerial meeting and they are expected to strongly oppose any new EU concessions to try to clinch a deal.
The Irish Farmers’ Association has warned the current deal promoted by Mr Mandelson would result in European farmers losing €30 billion in sales per year. Its president Padraig Walshe said last night the decision to proceed with a WTO ministerial meeting was proof of Mr Mandelson’s determination to secure a deal at any cost.
“If necessary, the veto commitment from the Taoiseach may have to be called in to prevent the destruction of the Irish farming and food sector,” he added.
A spokesman for Mr Mandelson said yesterday the EU had shown leadership on the WTO talks and urged other world trading blocs to do the same.