Meetings in Europe next week key to success of WTO talks in Hong Kong
New Zealand's minister for trade negotiations yesterday called for a stronger European Union commitment to cut agricultural subsidies, saying the fate of next month's World Trade Organisation talks in Hong Kong depends on key meetings in London and Geneva beginning on Monday.
'I would rather [Hong Kong talks] were postponed than that they conspicuously failed,' Jim Sutton said in an interview.
'I can't say yet where the potential for movement is going to be, but if we don't get some movement on agriculture market access into Europe, we are in deep trouble, regardless of what good suggestions might come in other aspects of the negotiations.'
Last week, EU trade commissioner Peter Mandelson offered to slash farm tariffs by an average 46 per cent. Several major trade partners said the deal fell short of expectations and the United States contested its value, saying the reduction was more like 39 per cent. The cuts stipulated a variety of conditions, and would not apply to 8 per cent of product categories deemed sensitive by Europe.
'Eight per cent is extraordinary and indicates they think they can shelter virtually all their sensitive areas from any reform,' Mr Sutton said.
He said eight per cent of categories could equal up to 90 per cent of trade, if sensitivity exemptions were applied to major products, such as sugar, beef or milk.