euro|topics - A breakthrough in Geneva

02/12/2008

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Main focus of Monday, July 28, 2008

A breakthrough in Geneva

The WTO talks in Geneva look set to achieve a breakthrough: Following initial differences of opinion the ministers agreed on a compromise which included reductions in EU agricultural subsidies and import duties for products from developing countries. The Doha round is thus close to conclusion. What does Europe think of the WTO's plans?

Frankfurter Allgemeine Zeitung - Germany

The daily Frankfurter Allgemeine Zeitung is confident that the WTO negotiations will reach a successful outcome: "[The director general of the WTO] Pascal Lamy was last week among the incorrigible optimists who still believed that the Doha round on the liberalisation of trade would be successful. ... Lamy was pinning his hopes on the talks in the smaller forum of the seven most powerful trading groups. ... This group has found a compromise whose most prominent feature is a major reduction in EU agricultural subsidies (which even then will still be too high). The sudden power game of the major nations, which until then had been exchanging tough words, took everyone by surprise. Many states will try in the next few days to make adjustments to the principle agreement on agriculture and industry or to gain advantages in the services sector. But the future path is basically clear. There is thus good reason now to hope for a compromise that will boost world trade." (28/07/2008)

Le Temps - Switzerland

The Swiss Le Temps concludes that the planned reform of agricultural subsidies makes sense even though it could deal a hard blow to local farmers: "'Disaster', 'victims' - the Swiss farmers have reacted fiercely to the compromise that is taking shape at the WTO. This is hardly surprising. ... It entails cutting subsidies for agriculture and reducing import duties. Switzerland, which belongs to the club of countries that gives its farmers most subsidies, will be directly affected. Farmers believe their incomes will go down by between 30 and 50 percent over the next ten years and that the number of people working in this sector will be halved in the same period. ... But the farmers have in fact been preparing for the end of the 'agricultural exception' for a long time now. Half of their income comes from subsidies. Certain duties make imported goods five times more expensive. Such protective measures make little economic sense and are hardly justifiable in a free economy. ... Farmers can count themselves lucky that the price increases on agricultural products will somewhat cushion the impact of the WTO measures." (28/07/2008)

El País - Spain

Despite the protests over the results of the WTO negotiations El Pais believes a successful outcome to the Doha round is indispensable. "It should be the most powerful, the wealthiest nations, that ... moderate their demands on the various forms of subsidies for their agricultural sectors and reduce the tariffs for agricultural and industrial products. Ultimately excessive subsidies and tariffs obstruct free trade and primarily harm developing countries, particularly those in Africa and South America whose export earnings depend on only a few products. If the Doha round failed ... this would hamper international cooperation, which is necessary for a number of reasons; reasons that have to do with the still very precarious financial stability, that are related to securing energy supplies, to food prices and to climate change, to name just a few examples [of issues] for which there are no national solutions." (28/07/2008)

» To the complete press review of Monday, July 28, 2008

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