EU Offers to Eliminate Agricultural Export Subsidies in Effort to Revive Doha World Trade Round

Strategic Insights -

In a bid to revitalize the stalled Doha world trade round, the European Union will today propose eliminating its agricultural export subsidies and softening its stance on contentious new trade rules, according to a letter to all 148 World Trade Organisation members. The EU's offer, signed by Trade Commissioner Pascal Lamy and Agriculture Commissioner Franz Fischler, aims to demonstrate its commitment to progressing the talks and flexibility in negotiations. This move precedes critical meetings of trade ministers in Paris this week, where efforts will be made to agree on a negotiating framework for the round by July. The US Trade Representative, Robert Zoellick, has praised the EU's initiative, stating that it will encourage other participating nations, particularly African countries, to support the WTO talks.

Key Takeaways:

  • The EU has agreed to eliminate its agricultural export subsidies in a bid to revive progress in the Doha world trade round.
  • The EU's offer, as proposed in a letter to all 148 World Trade Organisation members, also involves softening its demands for contentious new trade rules.
  • The key obstacles to agreement in the WTO talks were the EU's refusal to commit to ending farm export subsidies until now, as well as its demands for negotiations on the Singapore issues.
  • The US Trade Representative, Robert Zoellick, has praised the EU's constructive approach and emphasized the importance of this development in encouraging African countries to support the WTO talks.
  • The proposal comes ahead of critical meetings of trade ministers in Paris this week, where renewed efforts will be made to agree on a negotiating framework for the round by July.
  • The EU's Agriculture Commissioner, Franz Fischler, has signed the letter alongside Trade Commissioner Pascal Lamy.
  • EU member states were informed of the letter on Friday, before it will be formally presented by Commissioner Lamy in Brussels today, as part of the efforts to make progress in the talks.

Statistics:

  • 148 World Trade Organisation members will receive the EU's letter proposing the elimination of agricultural export subsidies and softening of demands on new trade rules.
  • The letter was signed by two key EU commissioners: Pascal Lamy, Trade Commissioner, and Franz Fischler, Agriculture Commissioner.
  • 1 July is the target date by which a negotiating framework for the Doha world trade round should be agreed upon by trade ministers.
  • Export subsidies and the Singapore issues (competition, investment, transparency in government procurement, and trade facilitation) have been major sticking points in WTO negotiations.

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