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After failing to persuade EU foreign ministers to restrict Mr Mandelson’s room to manoeuvre last week, Paris tried to drum up support among agriculture ministers meeting in Luxembourg. The French Government is insisting that the former British Cabinet minister, who is representing the EU in the World Trade Organisation talks, should not table any more offers that would give the EU’s trading partners better access to the European market.
The rearguard action came 24 hours after Mr Mandelson gave warning that the ministerial meeting planned for Hong Kong in December, which is seen as a make-or-break stage in the talks, was “on a knife-edge”. He repeated his view that agricultural concessions could be the key to opening up foreign markets for European services and industrial goods.
“If we want greater market access in advanced developing countries for our top quality manufacturers and services, we have to give increased agricultural market access in return,” Mr Mandelson told an informal meeting of European development ministers.
The EU is under pressure to increase its proposed cuts in farm tariffs. It has offered to reduce these by 50 per cent on the most protected items, although this is well below the 90 per cent the US has put on the table. Despite the French attacks, Mr Mandelson has the backing of his colleagues.
After the European Commission’s weekly meeting yesterday, Mr Mandelson’s office issued a statement confirming that he and his agriculture colleague, Mariann Fischer Boel, had “100 per cent backing” for putting forward a further offer on agricultural market access.
“This offer would be a conditional offer which would enable other WTO members to make further moves in relation to agriculture, industrial goods and services. It was agreed that the EU offer should be substantive and credible and within the mandate of existing common agricultural policy reforms,” the statement said.
However, as the EU prepares its hand, Rob Portman, the US Trade Representative, said that “the signs are not encouraging” that it would be enough to break the deadlock.
Ahead of the December meeting, John Tsang, Hong Kong’s Commerce Secretary insisted he did not see “any reason how this meeting could be postponed or delayed”.
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