[A-List] EU imperialism: farm export subsidies

["Michael Keaney" <michael.keaney@xxxxxx>]

It is helpful that Pascal Lamy has reminded us of the continuing problem
posed by "Europe" as it, at least in its "Old" guise, strikes a pose as
concerned world citizen whilst bulldozing neoliberalism through whatever
meagre protections "emerging markets" may have left against wanton theft. I
plan to put together something more substantial on this shortly, if only to
clarify important issues that anything purporting to be a European Workers
Party must address if it is to have a credible position.

------

Chirac plan on farm subsidies hailed by Lamy
By Guy de Jonquières and Tobias Buck in Brussels
Financial Times: February 26 2003

French president Jacques Chirac's call for rich nations to suspend subsidies
on farm exports to poor ones was a positive move that strengthened the
European Union's negotiating position in the Doha world trade round, the
EU's trade commissioner said on Tuesday.
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Mr Chirac's proposal, made at last week's Francophone African summit in
Paris, was "good news and a sign that the potential contradiction between
the French position on agriculture and the French position on development is
being seriously addressed", Pascal Lamy said in an interview. "It adds to
our toolbox in this negotiation."

But Mr Lamy stopped short of promising to incorporate Mr Chirac's proposal
in the EU's formal negotiating position. He said Brussels had already called
in the Doha round for better farm trade terms for poor countries and doubted
whether the US would accept Mr Chirac's demand that his proposed suspension
cover exports credits and food aid.

Until now, many observers have viewed Mr Chirac's outspoken defence of
Europe's common agricultural policy (CAP) as in conflict with his claims to
champion developing countries' interests and were surprised by his admission
last week that export subsidies harmed the latter's economies.

However, the French president dashed hopes at the weekend that France was
softening its opposition to rapid CAP reform, accusing Franz Fischler,
agriculture commissioner, of "obstinacy" in pressing for phased reductions
in production- related EU subsidies.

Mr Lamy, who visits Washington next week for talks with President George W.
Bush's administration and leading members of Congress, struck a conciliatory
tone towards the US. He said the two sides were co-operating in the Doha
round and stressed his determination to seek amicable solutions to bilateral
trade disputes.

His visit coincides with EU moves to draw up a final list of US exports
worth $4bn (£2.5bn) targeted for retaliation if Washington refuses to comply
with a World Trade Organisation ruling against the US Foreign Sales
Corporations business tax-break law.

However, Mr Lamy ruled out early retaliation, insisting the list was only a
precautionary measure, in case the US failed to repeal the law. He praised
Bill Thomas, chairman of the House of Representatives' powerful Ways and
Means Committee, for his determination to draft new legislation.

The trade commissioner said he was setting no deadlines for US action, or
for compliance with WTO rulings against US laws on anti-dumping, copyright
and trademarks. He did not want to take such a step unless it became clear
that the US was unable or unwilling to implement the rulings.

Nonetheless, he said, resolving some disputes, such as over the Byrd
amendment directing payment of anti-dumping duties to affected US companies,
would not be easy. "The worry is that things like this pile up . . . we
should remove them from the table one by one, and I'm quite worried that we
come to a situation where we have a logjam."