EU divisions on agriculture resurface over trade talks

EU divisions over agriculture re-emerged yesterday with France, Ireland and Austria criticising trade commissioner Peter Mandelson's handling of global trade talks.

French agriculture minister Dominique Bussereau accused Mr Mandelson of going beyond his negotiating mandate, while his Irish counterpart Mary Coughlan said she was "deeply concerned" that he was prepared to make further concessions.

"His behaviour at Davos was, to say the least, jumpy . . . without member states knowing," said Mr Bussereau. "In terms of respecting his mandate, it was a completely unacceptable method."

The frank comments made at a meeting of EU agricultural ministers in Brussels underline the extreme difficulty in restarting the Doha round of World Trade Organisation (WTO) talks.

Mr Mandelson and about 30 other trade ministers agreed on Saturday to kick-start the long-stalled talks designed to get a deal.

However, in a briefing yesterday, Mr Mandelson said he was more confident of a breakthrough in the five year-long discussions. He also said that a consensus was emerging with leading developing countries on how to achieve it.

However, most trade experts predict that future success in the Doha round can only be achieved if Europe and the US move further to cut agricultural subsidies and tariffs. The French, Austrian and Irish ministers criticised Mr Mandelson yesterday, who they accused of signalling to the US and developing nations that he could move beyond an offer to make average cuts in farm tariffs by 39 per cent.

Ms Coughlan said the offer already on the table was at the limit of the mandate under which he was empowered to lead trade negotiations. Asked if she trusted Mr Mandelson to carry out these negotiations, she replied: "I don't want a situation whereby the political astuteness of which he has a reputation would be used in a detrimental way."

However, agriculture commissioner Mariann Fischer Boel told the ministers that little had changed in terms of the substance of the negotiations since last July, and that details and figures were not discussed at Davos.

The WTO talks were suspended six months ago because of deep differences, particularly over the issue of farm trade.

Developing countries want to secure a reduction in US subsidies to its farm sector, which would enable them to compete in its market.

They also want a reduction in a range of tariffs applied to agricultural products in the EU. In return, countries such as India and Brazil would have to open up their markets in industrial goods and services.

Time is fast running out for ministers to agree a deal under the Doha round because the US administration will lose its powers to negotiate trade deals with little interference from Congress at the end of June.