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EU welcomes draft WTO deal as good starting point

AFP, Brussels
The European Commission welcomed draft WTO guidelines for liberalising world trade Monday as a good starting point but declined to say whether it expected agreement on the framework by the end of the month.
"The paper that the WTO produced on Friday is from our point of view a basis for further work," commission spokeswoman Arancha Gonzalez said.
"We note that it requires a number of clarifications and a number of precessions, and this is what we are going to work on over the coming days with our WTO partners in Geneva," she added.
The WTO proposed that its 147 member countries eliminate subsidies and credits on agricultural exports.
"Members agree to commitments ensuring the parallel elimination of all forms of export subsidies ... by a credible end date," the draft text distributed to WTO member states said.
WTO countries must examine the proposal before a meeting at the end of July, which holds the key for progress on the Doha round of trade talks.
Asked if the commission expected the WTO to secure agreement on the framework by the end of July as scheduled, Gonzalez was noncommittal.
"We're not in the betting business,
and therefore we cannot say what percentage chances we have of reaching this deal at the end of July," she said.
The spokeswoman added that on industrial goods, representing 90 percent of world trade, the text is "the minimum balance between a high level of ambition, which is what we want to achieve, and a low level of ambition that a number of countries have already expressed."
On services, the commission would like to see greater precision, including a deadline for improved offers from WTO partners, she noted.
Fellow spokesman Gregor Kreuzhuber said that on agriculture, the text was a step in the right direction but needed to be more precise.
"We say that we want to see the elimination of export subsidies and the elimination of trade-distorting elements of other export competition tools, and there the text has to become much clearer," he said.
Kreuzhuber added that it should also lock the United states into reforming farm support.
"Overall, the draft is a basis for discussion in Geneva in the coming days, and now the end game can begin," he said.
"We will of course contribute very constructively, hoping that our common objective (is) to get a deal on the framework of modalities for the different sectors ... by the end of July."