U.S. Trade Representative Robert Zoellick has praised the announcement of the European Union (EU) that it will offer to eliminate all agricultural export subsidies in World Trade Organization (WTO) negotiations.

Zoellick's office issued his statement May 10 shortly after the EU offer was made public. The offer came in a letter to other WTO members from EU trade commissioner Pascal Lamy and agriculture commissioner Franz Fischler.

Elimination of all agricultural export subsidies by some fixed deadline has been a U.S. demand in the WTO negotiations, which are called the Doha Development Agenda.

"I hope this will provide a shot in the arm to the overall negotiations," Zoellick said.

Zoellick and ministers from 29 other industrialized countries are expected to work to advance the negotiations when they gather in Paris May 13-14 for the annual Organization for Economic Cooperation and Development meeting.

Besides eliminating export subsidies, the United States has pressed in WTO agriculture negotiations for sharply reducing domestic support and opening markets by reducing tariffs and other barriers to imports.

Agreement on agriculture trade reform is widely viewed as crucial to successful completion of the WTO negotiations.

The French government has denounced the Lamy-Fischer proposal as exceeding the EU mandate.

Zoellick also referred to evolution in the status of the four so-called "Singapore issues" proposed years ago by the EU. He said he expected consensus on continuing negotiations on trade facilitation; the other Singapore issues -- investment, competition policy and procurement -- have failed to gain support.

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON, D.C.
20508
May 10, 2004

Statement of U.S. Trade Representative Robert B. Zoellick

We welcome today's announcement today that the European Union will, as part of the Doha negotiations, accept that all countries must set an end date for the abolition of agricultural export subsidies.

We're pleased that Commissioner Lamy and Commissioner Fischler have announced they are taking this important step. It is a demonstration of the potential of all to contribute to the success of the Doha Development Agenda.

I hope this will provide a shot in the arm to the overall negotiations.

The elimination of export subsidies was among a number of critical elements I recommended in my January letter to my WTO colleagues, and the kind of step that developing and other agricultural exporting countries have expressed repeatedly was necessary.

The United States has consistently advocated ambitious reforms in the Doha negotiations, particularly in all three pillars of agriculture: the elimination of export subsidies; substantial, harmonizing cuts in trade distorting domestic subsidies; and, a significant increase in market access. The goal of eliminating export subsidies has been important to the U.S. and others for a long time. The United States already offered to eliminate U.S. export subsidies.

The United States has noted it will support the EC's [European Commission's] move by agreeing to negotiate a parallel elimination of the subsidy element within export credits, and to negotiate disciplines on food aid to preclude displacement of commercial sales.

We look to others to show a similar spirit by stating their willingness to end monopolies in state trading enterprises and differential export taxes.

In the weeks ahead, WTO Members will be working with one another to develop the frameworks to advance the negotiations to the next stage. In a sense we're trying to get back to where we all hoped to be last September at the Cancun Ministerial.

When coupled with the European Union's recognition of the emerging consensus that we can clear the decks on the "Singapore Issues" by concentrating on the one area of trade facilitation, we are beginning to see the shape of a foundation upon which to build in the coming weeks and months.