BSE ammunition for trade battle

By Philip Clarke, Europe editor

EUROPES deepening BSE crisis has added weight to the commissions claim that agriculture should be subject to special treatment when it comes to liberalising trade.

Presenting the EUs formal negotiating proposal to the World Trade Organisation in Geneva this week, farm commissioner, Franz Fischler, said that agriculture is more than just an industry.

“It is also about the environment, consumers and food safety. This is why we will stand firm to defend these non-trade concerns in the WTO talks.”

The BSE crisis has strengthened that position, he said, emphasising that the precautionary principle should apply to trade whenever there are concerns about any food product.

But other trade blocks, in particular the Australian-led Cairns group, have warned that BSE should not serve as an excuse for further protectionism.

Other elements of the EU proposal include a commitment to increase market access, especially for the worlds least developed countries.

But countries should still have exclusive rights to products of specific designated origin or geographical identification, such as Stilton cheese or Timoleague Brown Pudding.

On export subsidies, Mr Fischler said: “We will agree to negotiate further reductions in export refunds provided other instruments that are used to boost exports, (such as credits and food aid), are also disciplined”.

As for domestic supports, the commission is adamant that the system of blue boxes, (for direct payments), and green boxes, (for environmental payments), be maintained.

Compensation to farmers for additional costs to meet animal welfare standards should also be exempted from cuts.

According to wire service reports, these ideas got a cool reception from some Asian and African delegates, who believe they still offer too much protection for EU farmers.

But Mr Fischler countered that Agenda 2000 had already proved the EUs commitment to less trade distorting, de-coupled support.

The Geneva meeting was held in preparation for a full stock-taking session on agriculture time-tabled for the end of March.

Negotiations on agriculture kicked off a year ago, though the EU is keen to see it incorporated in a more general trade round, where it believes it will have a greater chance of success.

The next meeting of the full 140 member WTO is to be held in Qatar in November, which will provide the next opportunity for launching such a round.