Reuters | By Doug Palmer | July 9, 2003
The United States pressured the European Union on Wednesday to show more flexibility in farm trade talks even if it does not offer new proposals.
"It's up to them to figure out how to do that," U.S. Trade Representative Robert Zoellick told reporters after a meeting with lawmakers. "I think everybody knows that they're going to have to show additional movement."
Last month, EU farm ministers agreed on a package of domestic farm policies that breaks a traditional link between farmers' output and the subsidies they receive.
U.S. officials welcomed the move and urged the EU also to make new farm trade negotiating proposals before a World Trade Organization meeting in Cancun, Mexico, this September.
But Gerry Kiely, head of agriculture, fisheries and consumer affairs for the European Commission's delegation to the United States, said on Tuesday that was unlikely.
He also argued the EU's current proposal for reducing domestic farm payments, tariffs and export subsidies was more popular with developing countries than the U.S. plan.
That's because the U.S. proposal requires poor countries to make deeper tariff cuts in exchange for a reduction in developed country farm subsidies, Kiely said.
Even so, the EU has been on the defensive in farm trade negotiations, with most countries favoring a faster and deeper pace of reform than it has proposed.
The outlook for the WTO talks, which also cover industrial goods, services and other trade areas, heading into the Cancun meetings is doubtful because of a number of missed deadlines.
Last year, the United States blocked an agreement aimed at ensuring poor countries would be able import generic versions of patented life-saving drugs without violating WTO rules.
U.S. pharmaceutical companies said the language opened the door for generic manufacturers in India and Brazil to produce and export many of their biggest money-making drugs, including Viagra, the anti-impotence pill.
Zoellick said he was talking to developing countries and pharmaceutical companies in the hope of resolving the issue before Cancun. "I think people recognize we've got some difficult issues, but I feel we're making progress."Reuters:
