Lamy optimistic delegates will agree new trade talks

The European Union Trade Commissioner, Mr Pascal Lamy, arrived in the Qatari capital of Doha confident that the World Trade Organisation (WTO) would agree to initiate a new round of trade negotiations.

He claimed that, in contrast to the position before failed talks in Seattle two years ago, all sides agreed on 80 per cent of the issues.

"The partners in the negotiations are much better prepared. In Seattle, the preparatory process was not a good one.

"The process has been much more transparent. Developing countries have been involved much more closely in the process. The spirit is much better," he said.

Mr Lamy acknowledges that poorer countries have reason to feel that they have not benefited as much as developed countries from the trade rules agreed by the WTO. He also favours a more flexible approach to the implementation of WTO rules that would allow poor countries to "let their economies globalise at a rhythm of their own".

The EU is trying to find a compromise between the US and developing countries over the controversial issue of access to medicines for more impoverished countries.

The poorer countries want to interpret WTO patent rules in such a way that would allow them to produce cheap, generic versions of expensive drugs such as those used to treat HIV and Aids.

The US, backed by countries such as Switzerland which have large pharmaceutical industries, wants a strict interpretation of the rules.

The EU wants to allow compulsory licensing of drugs in the event of a "public health crisis", a phrase developing countries regard as too restrictive.

The most difficult issue facing the EU is agriculture, with the US and countries such as Canada and Australia calling for the complete abolition of farm subsidies. Developing countries argue that EU export subsidies place non-European farmers at an unfair disadvantage.

But EU politicians indicated that, although they are prepared to negotiate about subsidies, they are not willing to move too far. France's Prime Minister, Mr Lionel Jospin, this week told farm union representatives that the EU must not sacrifice agriculture to get its own way on other issues.

"Agriculture will not be the European Union's adjustable variable. Agriculture will not be something that we give in on at the end in order to have won on the others," he said.

Developing countries oppose the EU's demand that investment and competition policy should be governed by WTO rules.

And the poorer countries are expected to form an alliance with Washington to oppose an EU proposal to apply environmental standards to trade policy and to allow countries to ban imports that they suspect of being detrimental to public health.

Mr Lamy said he understood the concerns of developing countries which fear that their industries could not afford to apply tough environmental standards.

But he insisted that the EU would remain firm in its determination to boost the environmental agenda.

"We are not going to stop our safety rules - our environmental rules for which our citizens have a lot of desire, affection and a lot of commitment - for the sake of developing countries," he said.