The Wall Street Journal
WASHINGTON -- The political atmosphere of next year's French elections will make it more difficult to launch a new round of global trade talks, U.S. Trade Representative Charlene Barshefsky said Tuesday.
Barshefsky told members of the House Ways and Means Committee that with the election approaching she expected French officials to "harden even further" their opposition to eliminating subsidies on agriculture products.
Agriculture subsidies provided by European countries to their farmers was a hotly debated topic during the World Trade Organization meeting in Seattle late last year. The U.S. and many other agriculture producing countries pushed the Europeans to eliminate the "trade distorting" practice.
Barshefsky said Europe's refusal to budge on the issue was a major factor behind the collapse of the Seattle talks.
Rep. William Thomas, R-Calif., critical of Barshefsky's handling of the Seattle WTO conference, challenged her assertion that the French elections would be much of a factor.
Thomas, the second-highest-ranking Republican on the committee, said the upcoming U.S. election, as well as the Clinton administration's attempt to raise the profile of labor standards and environmental concerns in the WTO would be a greater threat to launching a new round of talks.
"I disagree," Barshefsky responded.
Earlier in the hearing, Rep. Maxine Waters, D-Calif., accused the Clinton administration of pursuing a trade case on behalf of Chiquita Brands International Inc. in exchange for campaign contributions.
Barshefsky's office last year won a WTO ruling that said the European Union's banana import regime discriminated against fruit producers in the U.S and elsewhere.
"It is clear to me that Carl Lindner, the CEO of Chiquita and a major contributor to Republican and Democratic campaigns, used his political influence and connections to convince the United States to bring this case," said Waters, who spoke at the hearing as a witness.
Barshefsky, in response to a question later in the hearing, denied Waters' allegation. She said the case dealt with a "substantive issue" that was carried out "on the basis of merit."
-By Alan Yonan Jr.; Dow Jones Newswires; 202 862-9295 alan.yonan@dowjones.com
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