The EU trade chief, Peter Mandelson, has blamed France for being ‘needlessly defensive’ over farm subsidies as he is keenly taking efforts to revive global trade talks. The EU trade chief has also asked France to not to make global trade reform a political football in the wake of forthcoming presidential election. Differences over a range of issues have jeopardized the global trade talks and in case of failure to resolve the deadlock it would be impossible to strike a global trade deal in 2007.
Interesting Peter Mandelson’s comments came after his meeting with the French Minister Dominique de Villepin last week, which he described as constructive. The European Union has proposed a 39 percent cut in farm subsidies in the year 2005, which is France is not agreed to and has been resisting this proposal.
Intensive efforts are being taken at various diplomatic levels to ensure a major breakthrough in the stalled talks when the trade ministers of member countries meet later this month in Davos. In the meanwhile, reacting to the French reservation on Farm subsidies Mandelson has said that the position of France is needlessly defensive since EU in a strong position at the world Trade Organisation.
However, the experts are of the view that there are very slim chances that Paris would move in this direction ahead of the presidential election as the farming constituency has been quite dominant in domestic politics. In these circumstances, it can be assumed that any major breakthrough regarding global trade talks is only remotely possible in the forthcoming Davos meet.
Moreover, business groups fear that in case of failure to strike a deal in the global trade talks will have far reaching crippling effects. Obviously, if the horns remain locked over Doaha round talks, there are fair chances of increased regionalism and protectionism, vulnerable financial markets and sluggish domestic reforms.
