EU Rejects Planned WTO Move at Cairns Group Meeting
Efforts to kick-start stalled talks run into trouble when Europe's top trader walks away from the idea.
Compiled by staff
Published: Sep 20, 2006
Plans to revive World Trade Organization talks via this week's meeting in Australia of the Cairns Group of countries may never see the light of day, according to a Rural Press report.
The European Union has already dismissed as unworkable suggestions that the Cairns Group may put forward a plan to revive the WTO negotiations.
Media reports Tuesday quoted EU trade negotiator, Peter Mandelson, as already rejecting an idea to increase the EU's tariff cut offer by 5pc in return for an extra $5 billion reduction in US farm subsidies.
Mandelson's pre-emptive rejection of the plan, which has yet to be endorsed by the Cairns Group of 18 countries which meets tomorrow, has frustrated Australian Trade Minister Mark Vaile.
He said, "We've proposed a middle ground that would deliver real trade flows."
It's a proposal for an extra 5pc cut by both the US and EU on their stated, deadlocked positions on agricultural tariffs.
But neither party is willing to move to that this stage.
The Cairns Group will meet in the city of its foundation in North Queensland tomorrow and Thursday.
The significance of the meeting as an opportunity to revive the collapsed WTO talks is borne out by the attendance of WTO Director General Pascal Lamy and US Trade Secretary Susan Schwab.
However, Mandelson declined his invitation.
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