EU states hold up WTO farm trade proposals

EC proposals on agriculture as part of global talks to free up world trade were blocked today by opposition from member states…

EC proposals on agriculture as part of global talks to free up world trade were blocked today by opposition from member states, particularly Ireland and France, EU diplomats said.

The hitch in the Commission's proposals, which will now be discussed by foreign and trade ministers next Monday, is embarrassing just a day before the World Trade Organisation (WTO) is due to discuss the agriculture question.

But the spokeswoman for EU Trade Commissioner Pascal Lamy said the EU executive could live with the delay.

"They (EU member states) have not given us the green light," said Arancha Gonzalez. The EU executive anyway believed the proposals would get member state backing on Monday, which meant they had only been delayed by a matter of days.

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EU trade diplomats said France and Ireland had asked that foreign and trade ministers from the bloc decide on the issue next Monday at a monthly meeting in Brussels.

The Commission rattled member states with its plan to offer EU cuts in import tariffs by 36 per cent, a reduction in export subsidies by 45 per cent and a slashing of trade-distorting domestic farm support by 55 per cent.

Although the Commission runs trade for the EU, it must consult with member states. It will rarely act without their backing, particularly in such a sensitive area as agriculture.

An EU diplomat bemoaned stalling over the trade proposals just before a next round of WTO talks in Geneva tomorrow, when an overview paper on proposals so far will be discussed.

"People will say that this is a pity," the diplomat said. The overview paper is the build-up to a March 31 deadline for WTO members to agree on the way they propose to free up farm trade.