U.S. Raises Concerns with EU Proposal
USTR and Congress weigh in on what the European Union trade proposal would do for opening up markets.
Compiled by staff
Published: Oct 28, 2005
Although the U.S. Trade Representative Office recognizes the actions taken Friday by the European Commission as a step in the right direction, much more needs to be done to achieve a Doha Round that promotes development, opportunity and global economic growth, says USTR Spokeswoman Christin Baker.
Baker says from USTR's early analysis, the United States is disappointed with the new EU proposal. "First, the proposed tariff reductions are lower than proposals from the G-20 developing countries and far lower than the U.S. proposal," Baker says. "As concerning, the large number of exceptions for so-called sensitive products apparently has not changed from earlier EU proposals, and another element - the 'pivot' - actually walks back from their last proposal. Both of these elements would allow substantial loopholes to the relatively lower tariff cuts the EU has offered."
Senate Agriculture Committee Chairman Saxby Chambliss initial reaction was also disappointment. "I have concerns with some of the provisions, specifically those concerning countercyclical payments and the new blue box," he says. EU's support for moving forward calls for stricter disciplines on U.S. countercyclical payments, what it calls as the most trade-distorting U.S. farm payments.
Chambliss says he remains confident that the offer can improve with time. Chambliss' democrat counterpart on the Ag Committee, Sen. Tom Harkin, says Europe is going to have to do better than the latest offer to strike a deal in this round.
"I am concerned that the EU once again is demanding a high price tag for what appears to be modest improvements in exports for U.S. farmers," Harkin says. "The EU only vaguely addressed how it will reform high tariffs that now protect many EU products from competition. These unanswered questions are critical in evaluating any proposal from the EU."
Harkin also voiced concern with Europe's insistence that America change its international food aid. "U.S. food aid helps millions of impoverished people who do not have access to sufficient food, yet the EU demands that we reform a policy that has been successful and highly beneficial. I call on Ambassador Portman to continue resisting demands to reduce American food aid — this is not time to scale back food assistance for developing countries," says Harkin.
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