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EC sends strong unity signal
BRUSSELS, Dec 25 : The European Community (EC) ha* sent a strong signal of unity after the recent Maastricht summit with Its rejection of a GATT plan to free up world trade, writes Reuter.
EC trade and farm minis ter* late on Monday staked out ■ firm stand against a compromise global trade reform plan put forward by the Director General of the General Agreement on Tariff* and Trade, Arthur Dunkel.
They took the stance de spite uneasiness, especially among the Germans and Bri tish, that the five-year-old Uruguay Round of trade talks was seriously close to failure.
The ministers' willingness to put those concerns aside In the Interest of EC unity showed the depth of their opposition to Dunkel's approach to cutting farm subsidies, diplomats aatd
It also marked a victory for France, which has steadfastly resisted calls by the United States and a group of food ex-
porting allies for deep cuts In farm subsidies, they said.
In his 451-page proposal released late last week. Dunkel ■ought to prepare for a final bargaining round early next I**-
GATT negotiators fear the talks could become swept up in political cross-currents which will gain force as next November s US presidential election approaches.
German Economics Minister Jurgen Mocltemann voiced those concerns in his remarks to EC ministers on Monday
"Already there are initiatives In the US Congress to tighten up US trade law further. ‘ Moelk-mann said. Failure of the round would unleash US protectionist pressers and threaten the EC economy, he added
The German minister said GATT negotiators were very close to success on issues such as market access, services such as banking, insurance and telecommunication* and estab fishing rules to protect against ulracy of copyrights and
’"‘^We must hmc success now nfni ST i*91^'^oetlemann
reporters.
EC farm and trade ministers prepared ■ draft statement voicing concern over the farm trade provisions of Dunkel's proposal but under-fining the need to reap sucscm in the Uruguay Round in Order to stimulate the world economy.
However, the final communique was much tougher, saying Dunkel's farm trade plan
I was surprised that the definitive text changed the ministers' statement in a sen-sittvc text changed the minister* statement in a sensitive way to present a whole different image." a Dutch diplomat said
The EC will to display untty was In line with an effort a week earlier when the bloc, fresh from reaching Its historic Maastricht monetary and
political unity pact, averted a split on recognition of Yugo*
EC officials M^d Dunkels approach Irritated minister* because It would undercut a central plank of the Community’s proposed farm reform package, which would trim price supports and instead offer direct, income-linked payments to EC farmers.
Dunkel's draft proposal would also require ■ 24 per cent cut in the volume of subsidised exports between 1993 and 1999.
That was especially hard for French grain farmer*. Danish beef and pork producer* and Dutch dairy farmer* to swallow^ EC officials Mid
The GATT chiefs plan would lead to the dismantling of the EC's variable levy scheme that effectively curbs Imports through automatically adjusting border taxes
The longer people studied the Dunkel text, the more they opposed ft." the Dutch diplomat said.