The Hindu : 'EU will not allow Iraq war to hit trade'

Online edition of India's National Newspaper
Saturday, Mar 15, 2003

National

National

'EU will not allow Iraq war to hit trade'

By Our Special Correspondent

NEW DELHI March 14. With the shadow of the Iraq crisis hanging over the global economy, the European Union has launched an offensive to ensure that political tensions do not spill over to trade agendas. The EU Trade Commissioner, Pascal Lamy visited Washington last week to make sure that the impact of war on trade and the already fragile global economy is contained as far as possible. Despite the friction between the U.S. and leading players in Europe over the prospect of war with Iraq, the EU which is responsible for the bloc's trade policy is determined to ensure by a dialogue that trade flows are not impacted. According to Mr. Lamy, ``the EU acts in trade as a bloc. I will make sure — as it is my constitutional responsibility — that it continues to do so.''

Stressing on the volume of EU-U.S. transatlantic trade which is currently around one billion Euros per day, he said ``we will not allow war on Iraq to stir up trade.'' At the same time, he refused to comment on the present situation in the Gulf since he was not responsible for the EU foreign and security policy. Describing the world of trade as ``less noble'' than the high sounding arena of diplomacy and foreign affairs, he said this world is ultimately very important because it ``creates wealth, reduces poverty and provides employment''.

Asked about the impact of war on the trade negotiations under the Doha Development Round of the World Trade Organisation, he said that in the backdrop of such uncertainties ``I will make sure we (the EU) react in a way that more certainties, more rules and more discipline is imposed as this is what is needed.''

On the effect of a possible war on the Cancun conference, he said the trade people will be shouldered with even more responsibilities than the ``nicer'' international elements of diplomacy.

Addressing a press conference at the conclusion of a hectic two-day visit, Mr. Lamy stressed that India is one of the ``elephants'' in the trade negotiations en route to the Cancun conference. ``I think elephants are good to travel with on bumpy roads'', he said.

Giving details of his discussions with policy-makers here, he said the focus with the Finance Minister, Jaswant Singh was on the world economy in the context of geopolitical tensions and the impact on global oil prices.

The talks with Commerce Minister, Arun Jaitley were largely on multilateral issues relating to the programme of the Doha Development agenda, while with the Agriculture Minister, Ajit Singh, the meeting focussed on India's interests in this sector as well as common concerns on genetically modified foods.

Earlier at a meeting organised by the Confederation of Indian Industry, Mr. Jaitley asked the EU not to be rigid on issues such as sanitary and phytosanitary standards and market access to make WTO acceptable to the developing world. He also emphasised that the onus to remove roadblocks on the way to Cancun lay with the developed world. He felt that if the time schedule in relation to removing barriers was adhered to, it convinced domestic constituencies and made it easier for them to feel the advantages of the WTO. He urged the EU and the developed world not to be rigid in its terms and conditions on sanitary and phytosanitary measures, special and differential treatment and market access to Indian products.

Printer friendly page
Send this article to Friends by E-Mail

National