Happy Lamy cannot resist saying 'I told you so'

As he returns home from Doha today for a much-needed rest, the EU Trade Commissioner, Mr Pascal Lamy, might well reflect on what a difference a day makes.

On Tuesday evening, as negotiations became bogged down over agriculture and the EU appeared to have bargained away most of its demands, European ministers were queuing up to denounce Mr Lamy's negotiating style. They complained he had given away too much too soon and allowed the EU to appear stubborn in its refusal to budge over agricultural export subsidies.

But when Mr Lamy met the same ministers yesterday morning to urge them to accept a deal in Doha, he was rewarded with an enthusiastic round of applause. During the intervening hours, Mr Lamy had effected a remarkable reversal in the EU's fortunes.

"I cannot resist pointing out that many in the press predicted disaster both for the WTO and the EU in these talks. It is always better to negotiate to a conclusion, rather than to jump to conclusions. The EU kept its head, held its nerve - and its unity - and I believe this has paid dividends," Mr Lamy said last night.

While officials and journalists slept in armchairs in the lobby of Doha's Sheraton Hotel, Mr Lamy and his negotiating team were attempting to persuade the US, Canada, Japan and developing countries to concede on the EU's key concerns.

These included linking environmental standards to trade, including labour standards in the next round of negotiations, and setting rules for investment and competition. But the most contentious issue was agriculture, specifically the EU's refusal to make a binding commitment to phase out export subsidies.

Within the EU's 15 member-states, only Ireland and France were determined not to compromise on this issue. While Mr Lamy was negotiating, the Minister for Agriculture, Mr Walsh, was lobbying other EU member-states and explaining Ireland's position to non-EU ministers, including the US Agriculture Secretary, Ms Ann Veneman.

The stiffest resistance came from the Cairns Group of major food exporters that includes Canada, Australia, New Zealand, Brazil and Argentina. The breakthrough came around 5 a.m. when the US and Canada said they were willing to preface the commitment to phase out export subsidies with the words "without prejudicing the outcome of the negotiations".

This was acceptable to the EU, including Ireland and France, because it meant that the end point of the negotiations had not been predetermined.

Meanwhile, Mr Lamy had clawed back much of the EU's agenda on other issues, although he admitted last night that he was disappointed that labour standards failed to figure significantly in the final text.

It took EU ministers just two hours to agree to the new text of the declaration and they rewarded Mr Lamy and the Agriculture Commissioner, Mr Franz Fischler, with a round of applause.

By lunchtime yesterday, a bleary-eyed Mr Walsh was able to declare the result a negotiating triumph for Ireland. He said it showed what was possible within the EU when a member-state needed to defend a vital national interest.

But as the EU delegations started to celebrate the deal, news came through of last-minute hitches involving Asian canned tuna and South American bananas. By the time these were resolved, India demanded clarification of the declaration's commitment to discuss new rules for investment, especially foreign direct investment.

It was after 6 p.m. yesterday, almost 24 hours after the WTO's original deadline, that the delegates trooped into the plenary hall to approve the launch of a new trade round.

As he spoke to the press last night, an exhausted but smiling Mr Lamy could scarcely contain his delight that a trade round he has worked for two years to prepare had finally been launched.

"Ladies and gentlemen, the WTO negotiating show is back on the road," he said.