EU efforts on trade fall 'comically' short, says Sutton

European Union (EU) efforts on agricultural trade liberalisation fall "comically" short of what was agreed for the World Trade Organisation (WTO) Doha round, Trade Negotiations Minister Jim Sutton says.

In Paris for annual meetings organised by the Organisation for Economic Co-operation and Development (OECD), Mr Sutton told NZPA the world was waiting for Europe to fall into step with it.

Mr Sutton is among several top trade negotiators who have gathered in Paris, with EU Trade Commissioner Pascal Lamy and US Trade Representative Robert Zoellick among them.

He had an often spiky OECD Forum debate with French Food, Fisheries and Rural Affairs Minister Herve Gaymard today over phasing out of Common Agriculture Policy subsidies protecting European farmers.

France is one of the most powerful EU nations, and one of the least disposed to phasing out domestic and export subsidies.

Mr Sutton, who will tomorrow discuss trade at the high-powered OECD Ministerial Council meeting, called the debate "skirmishing -- phony war if you like".

Mr Gaymard had called France the voice of dissent from the consensus, Mr Sutton said.

"We need to keep pointing out that the consensus is that there shall be a very ambitious outcome for agriculture in the Doha Round," he said.

"Every WTO member agreed to that -- including the European Union -- in Doha.

"The negotiation proposals in agriculture of the European Union fall comically short of the level of ambition that their own representatives agreed to in Doha.

"One must say how long does the world have to wait while the dissenters consider that they might be right while everybody else is wrong -- that they are the only people in step."

Europe had made it clear its position was woefully short of what was required.

If the EU did not reform its Common Agriculture Policy it was very difficult to see how its WTO representative could effectively negotiate, he said.

"There will be no room that I can identify for manoeuvre ... the Doha Round would ultimately tragically fail."

A successful trade round is seen as crucial by New Zealand, which is one of the world's leading agricultural exporters.

Mr Sutton said he remained an optimist, as change was taking place, albeit at the pace of a glacier advancing.

He has called the EU's 40-billion-euro ($80 billion) a year Common Agricultural Policy (CAP) the "biggest single obstacle" to progress in the talks, due to wrap up in 2005.

A March 31 deadline for an outline on agricultural trade talks was missed.

With the world's major powers still at odds over the US-led war on Iraq, fears are mounting that a new WTO deal to lower trade barriers and boost the global economy could fail.

New Zealand is a key member of the 18-nation Cairns Group of farm exporters, which includes Australia, Brazil and Argentina, and which campaigns for the total liberalisation of farm trade.

- NZPA