EU, US to agree ahead of trade talks

LONDON – European and American trade negotiators are on the verge of an agreement that could restart global trade talks, the Financial Times reported yesterday.

Citing people familiar with the negotiations, the business daily said that the deal involves the European Union cutting barriers to foreign agricultural products by, on average, 54 per cent. The United States, on the other side, is offering to lower the ceiling on its domestic farm subsidies to about US$17 billion, the newspaper said.According to the FT, both sides have also discussed deeper cuts to agricultural support, citing people familiar with the discussions.”We are trying to get to the absolute limit of what is politically feasible without falling off a cliff,” an unidentified official was quoted as saying by the FT.Meanwhile, an unnamed senior EU trade official said the talks were “constructive but not definitive”.At the same time, Brazil has been separately negotiating with the United States and EU, and has sent a senior diplomat to India over the weekend to attempt to agree on a common position before the World Economic Forum at Davos, Switzerland later this month.The FT said that any agreement between the United States and EU is contingent on similar concessions by Brazil and India on lowering their barriers to services and industrial goods.The Doha Round, launched in the Qatari capital in November 2001, is aimed at reducing tariffs, subsidies and other barriers to global commerce in order to boost development in the world’s poorest countries.Agricultural subsidies and market access are key sticking points in the Doha round of trade talks, which have foundered badly since their launch.The WTO suspended the process last July after negotiators from six major partners, including the United States, EU, Brazil and India, failed to reach agreement after a five-year effort.Developing countries want lower tariffs on their agricultural exports to US and European markets while industrialised nations seek greater access to developing and emerging nations for their industrial services and goods.Nampa-AFPThe United States, on the other side, is offering to lower the ceiling on its domestic farm subsidies to about US$17 billion, the newspaper said.According to the FT, both sides have also discussed deeper cuts to agricultural support, citing people familiar with the discussions.”We are trying to get to the absolute limit of what is politically feasible without falling off a cliff,” an unidentified official was quoted as saying by the FT.Meanwhile, an unnamed senior EU trade official said the talks were “constructive but not definitive”.At the same time, Brazil has been separately negotiating with the United States and EU, and has sent a senior diplomat to India over the weekend to attempt to agree on a common position before the World Economic Forum at Davos, Switzerland later this month.The FT said that any agreement between the United States and EU is contingent on similar concessions by Brazil and India on lowering their barriers to services and industrial goods.The Doha Round, launched in the Qatari capital in November 2001, is aimed at reducing tariffs, subsidies and other barriers to global commerce in order to boost development in the world’s poorest countries.Agricultural subsidies and market access are key sticking points in the Doha round of trade talks, which have foundered badly since their launch.The WTO suspended the process last July after negotiators from six major partners, including the United States, EU, Brazil and India, failed to reach agreement after a five-year effort.Developing countries want lower tariffs on their agricultural exports to US and European markets while industrialised nations seek greater access to developing and emerging nations for their industrial services and goods.Nampa-AFP