EU WTO position would not endanger Irish beef sector

EU TRADE Commissioner Peter Mandelson has strongly rejected claims that he is ''selling out'' the beef industry by supporting a new compromise proposal forged in a breakthrough WTO negotiation last week.

 

He has also said the vast majority of EU states are backing the controversial package, which could unlock seven years of deadlock in World Trade Organisation (WTO) talks.

 

Mandelson has come under fire from Irish farmers for supporting cuts on beef import tariffs.  Mandelson, who is the EU's chief negotiator in the WTO talks taking place in Geneva, said Irish farmers were exaggerating the impact of the draft tariff cuts.

 

Under the compromise proposal, EU would cut tariffs on beef imports by 23 percent over five years. The EU will also agree to accept a quota of 290,000 tonnes of beef at very low tariff rates in return for labelling beef as a sensitive product.

 

This means that the standard 70 percent tariff cut proposed for agricultural imports into the EU will not take effect under a new WTO deal.

 

EU negotiatiors have also ensured that about 45 percent of the 290,000 tonnes of beef in the low tariff quota would be low grade beef that would not compete against Irish exports. 

 

EU agriculture commissioner Mariann Fischer Boel rejected the IFA's warnings of disaster for the beef sector, saying the industry had a good future and could even search out new markets in developing states in the event of a deal.

 

She also promised to use a proposed EU reform of the common agricultural policy (CAP), , to try to find new ways to support beef and dairy farmers.

 

The compromise package was accepted as the basis for further talks by the world's seven biggest trade blocs - India, China, Japan, Australia, Brazil, the US and the EU last Friday.

 

However, several states such as France and Ireland continued to express concerns about the proposed cuts in agricultural tariffs.

 

A vote would only take place at the last stage of a WTO agreement when EU states would have to decide on a ''final undertaking'' - the name given to the package of measures contained in any final WTO agreement.