WTO finds two exceptions to open EU markets

The European Union's trade policy has largely maintained open markets with the exception of agriculture products and textiles…

The European Union's trade policy has largely maintained open markets with the exception of agriculture products and textiles, the World Trade Organisation (WTO) said today.

In its two-year trade policy review of the EU, the WTO's secretariat found that tariffs "well above the average" applied on textile imports into the EU, while average tariffs for farm products were four times higher than those on other goods.

The regular assessment also said there was evidence of pressure within the EU to increase tariffs on some processed farm products.

The WTO highlighted the vital role of the 15 nation bloc in the world trade system and said its support for the liberalised, but rules-based, trading regime was crucial.

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It said policy pursued by the EU over the past two years had backed up further internal economic integration "by maintaining open markets for non-agricultural products - except for textiles and clothing - proceeding on WTO liberalisation commitments and supporting further deepening of multilateral commitments".

The WTO also noted the average EU tariffs on some chemicals, textiles, iron and steel products were "slightly lower" than in its previous report two years ago, at an average of 4.1 per cent.

But it warned that the EU's simple average tariffs on agricultural products stood at 16.1 per cent, with even higher levels applied on imports of products that are covered by the EU's Common Agricultural Policy (CAP).

On textiles and clothing the WTO also found "tariffs well above average".

European Commission deputy director-general for trade Mr Roderick Abbott welcomed the report.

Mr Abbott acknowledged that agriculture and fisheries were "difficult areas".

"The direction we're going is to reduce subsidies in fisheries and also in agriculture, helped by the reduction in world prices one has to say," he said.

AFP