EU Member States Putting Doha Agenda at Risk

Deputy Prime Minister and Minister for Trade, Mark Vaile says the European Union's refusal to offer more farm tariff cuts had blocked world trade negotiations and could take them to the brink of collapse.

Speaking from Geneva, Switzerland Mr Vaile's comments follow a crucial round of talks between ministers of the Five Interested Parties (Australia, the US, EU, India and Brazil).

"The failure of the EU to make a meaningful offer on agricultural market access is deeply disappointing," Mr Vaile said.

"Those EU member states who talk up their contribution to development are now blocking the most significant steps the global community could take in years to create new opportunities for the world's poorest countries.

"The EU are the ones putting the development round under threat, and developing countries will suffer most. The World Bank has estimated that the Round could increase global GDP by close to $300 billion and raise 140 million people out of poverty.

"With only seven weeks left until the Hong Kong Ministerial Conference in December, we have just about run out of time. If Hong Kong fails there is little chance of completing negotiations in 2006, putting the future of multilateral trade reform at serious risk for the short term," Mr Vaile said.

Mr Vaile said the United States had moved a long way in talks last week but the EU has failed to deliver and the ball was now squarely in the EU's court.

He emphasised that progress on agriculture was fundamental to delivering on the development objectives of the Doha Round. The Round aims to level the playing field on agricultural trade which remains the most distorted sector of world trade

"Without movement on agriculture by the EU, other areas of the negotiations, particularly industrials and services, will remain blocked.

"Australia will continue to work hard with the Cairns Group of agricultural exporting countries and others that want an ambitious outcome to push for a successful conclusion to the Round.

But the key now is urgent movement on agricultural market access by the EU," Mr Vaile said.

Contacts: Richard Forbes 02 6277 7420