BRUSSELS--While not giving up hope that a new comprehensive round can be launched at the World Trade Organization this year, European Trade Commissioner Pascal Lamy said July 6 that getting an agreement to do so may have to wait until 2001.
Speaking before the Confederation of British Industries in London, Lamy said that with the U.S. election due in November, "the timing is tight." He also said that because "uncertainties continue," such as the anticipated vote in the U.S. Senate on permanent most-favored-nation trade status for China, "we may have to show a little patience."
The French Socialist added that while waiting for the right opportunity to launch a new round, continued efforts should be made to "build up confidence in Geneva by addressing the problems of developing countries ... on implementation, better structured technical assistance and capacity building."
As for the current WTO negotiations on agriculture and services, Lamy stated that while efforts should be made to move forward, results would prove to be "significantly more in the context of an overall round."
Commenting on another matter before the WTO, Lamy warned that if the United States decides to implement "carousel" retaliation against the EU--by rotating products on the list of EU exports subject to U.S. sanctions imposed in the banana and beef trade disputes-- it will only make it harder to settle their differences.
But Lamy acknowledged that the EU's failure to come into compliance with the WTO rules in the matter actually triggered the U.S. "carousel'' legislation. "I regret that it has taken so long for the EU to come into compliance on both cases, not least because it has given the U.S. the excuse to invent its own dispute settlement mechanism called 'carousel,'" Lamy said. "Or should that be Russian roulette whereby a new selection of EU exporters and U.S. importers get to suffer the apparently random pain of retaliation every six months?" Lamy asked.
Lamy reaffirmed the EU's stated position that the carousel approach is out of line with WTO rules. Therefore, he said the EU will call for a dispute settlement panel at the WTO if the current consultations do not achieve an adequate solution.
Moving beyond the WTO matters, Lamy used the opportunity to dismiss recent calls from Senator Phil Gramm (R-Tex.) for the United Kingdom to consider leaving the EU and joining the North American Free Trade Agreement.
"I am glad to say that the [UK] Foreign Office has already said that this is a barmy idea," Lamy stated. "There will always be siren voices such as Senator Phil Gramm with his fine Texas accent tempting the U.K. to take another path. But beware. Like Odysseus, you should tie yourself to the mast. Don't get drowned in mid-Atlantic. ''
Lamy emphasized that 53 percent of British exports go to other EU member states and 15 percent go to NAFTA countries.
By Joseph Kirwin
Copyright c 2000 by The Bureau of National Affairs, Inc., Washington D.C.:
