Key points by Mr. Pascal Lamy

European Commissioner for Trade

Press Conference

WTO Ministerial Meeting

Seattle, 30 November 1999

Mr Lamy made three key points :

The EU believes that the arguments of the demonstrators environment, labour standards, food safety, consumers' concerns and animal welfare - have to be answe red, even if the methods of some may be suspect. Similar concerns exist in the EU, and the world trade agenda must address such public concerns. Hence the EU's emphasis on a comprehensive agenda covering new issues. He acknowledged that the demonstrations were making it even harder than it already was for the WTO to conceive of a Round with just the built-in agenda negotiators could no longer be impervious to the views being expressed outside.

The EU is continuing to push its initiative in favour of the poorest countries (LDCs). Once it has the support of Quad countries, it will have the critical mass to promote the issue with real vigour. Japan had already joined, and Lamy was hopeful that the US would follow suit shortly.

The Commission has been instructed by the Council of Ministers to take the initiative by preparing a text which will help to move the negotiating process in Seattle forward. The Commission is seeking to rally like-minded countries round its position, and will present the text to Mike Moore, DG of the WTO, this afternoon. The trext will present the EU's comprehensive position on the new Round, and while showing flexibility in certain areas will not shift on some of the EU's key principles. He said the EU had a margin of flexibility, and that this would be used when it was tactically wise to do so.

Mr Lamy said the EU had many agreements with the US, as well as �� more than detailed disagreements ��. He underlined that he was currently working bilaterally with many emerging countries such as Brazil, Egypt, India, South Africa and Mexico to canvas support for its initiative.

He reiterated the EU's view that agriculture cannot be treated in the same way as normal goods. Once this basic point is acknowledged, the EU will be ready to pursue its commitment to make further cuts in export subsidies and domestic support and improve market access under the terms of Article XX. As the EU and US fund their farmers to the same degree, it is hard to see how the US will justify to its taxpayers how it is going to eliminate all agricultural support. Mr Lamy noted that agriculture was not on the list of concerns of most of the demonstrators.

Mr Lamy said he did not oppose an 'early harvest' of tariff cuts, but the US-driven Accelerated Tariff Liberalisation initiative from within Apec was unbalanced and could only be accepted if it was part of a broader package of cuts reflecting EU exporting interests.