Talks to launch a new round of world trade negotiations were deadlocked early this morning as Ireland and France refused to compromise on export subsidies for farmers.
As the World Trade Organisation (WTO) meeting in Qatar passed a self-imposed midnight deadline, the Minister for Agriculture, Mr Walsh, was under intense pressure to give way. "The situation is very, very difficult. There's only France and ourselves that have this very strong position," he said.
The 142 members of the WTO are meeting to set an agenda for a new round of negotiations aimed at further liberalising trade. They failed to launch a trade round amid anti-capitalist protests in Seattle two years ago, and failure to agree this week would plunge the WTO into crisis.
Ireland and France object to a commitment in the draft declaration to reduce "with a view to phasing out" export subsidies to farmers. Mr Walsh said he would not accept any wording that implied eventual elimination of the subsidies. "Our position remains the same. We're holding the line," he said last night.
As delegates waited around poolside tables in Doha's Sheraton Hotel for news from the negotiations, most remained optimistic that agreement would be found. The Minister of State for Enterprise and Trade, Mr Tom Kitt, said last night that he still believed a new trade round would be launched.
"I remain hopeful even at this late stage. A lot of people are working very hard behind the scenes. It's going to the wire, but I remain hopeful," he said.
The European Commission is negotiating on behalf of all 15 EU member-states on a strict mandate that rules out, among other things, the language on farm subsidies to which Ireland and France object. Most EU member-states, however, are prepared to compromise on agriculture in return for concessions on other issues, such as linking environmental standards to trade.
Some member-states have criticised the negotiating tactics adopted by the EU Trade Commissioner, Mr Pascal Lamy, complaining that he conceded too much too soon.
Pressure on Ireland and France was intense last night and a member of one EU delegation said last night that Mr Walsh was being "softened up for the kill".
Developing countries have said that removing export subsidies is crucial to helping their people out of poverty, and major food exporters such as Canada were last night ruling out any compromise with the EU on the issue.
Mr Walsh predicted that negotiations would continue until at least 5 or 6 o'clock this morning, but he stopped short of predicting that a new trade round would be launched. "I'm hopeful that we'll launch a round here but I wouldn't go any further than that," he said.
