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All eyes on Bush-Chirac interaction

By Vaiju Naravane

Lausanne (Switzerland) May 31. Kick-starting a sluggish world economy, combating the threat of global terrorism, conserving the planet's resources, reducing the ever-widening gap between rich and poor, fighting the AIDS pandemic, giving poor nations access to clean drinking water: the G-8 Summit that opens in the French resort town of Evian on Sunday has a great deal on its plate.

And yet all eyes will be riveted on the much-awaited handshake between the U.S. President, George Bush, and French leader, Jacques Chirac. The gesture is likely to symbolise the end of one of the most serious trans-Atlantic rifts the western alliance has known in recent times. Cooperation, reconciliation and working together will be the by words at Evian this year.

Conscious efforts

Though both sides have made a conscious effort to bury the hatchet and get back to business, it will be difficult to wipe the slate clean and start afresh. Mr. Bush has officially declared that France will not be punished for its `betrayal' over Iraq. France has given proof of its good intentions and its new `pragmatic' approach by burying its reservations over a predominant U.S. role in post-war Iraq.

But even if reason, good sense, pragmatism have prevailed on both sides, it is going to take a while before the Franco-U.S. relationship recovers its former level of confidence and understanding.

The question of Iraq fanned passions on both sides. Washington, which sees itself as a nation at war since September 11, reserves the right to launch pre-emptive strikes when it perceives a threat to its security. Paris maintains that force should not carry the day over international law and has argued in favour of a multi-polar world where a single "hyper-power'' will not be the sole decision-maker.

Given the strong, almost irreconcilable differences, it is difficult to imagine a summit that will be all smiles and roses. Mr. Bush has already made it known that he will not be staying for the final dinner. Paris has insisted on injecting an element of multi-polarity by inviting countries like India, China, Brazil or Mexico, not counting African leaders from the NEPAD states to a special pre-summit dialogue.

Though the discussions will be held on the calm shores of Lake Leman, the discussions behind closed doors are likely to be stormy.

Farm subsidies

The question of western farm subsidies does not feature on the agenda but it is an issue many developing world leaders feel extremely strongly about. Western subsidies to farmers today top a billion dollars a day. This allows farmers to export to developing countries at less than cost price ruining local markets.

Informed sources have hinted that Mr. Chirac might come up with a proposal to stop export subsidies for farm products as of 2006 if everyone around the table agrees to do the same. It is highly unlikely that Mr. Bush agrees.

Another bone of contention is likely to be the question of Euro-dollar parity. The Euro started off as a poor cousin to the U.S. dollar. Since then the Euro has continued to rise against the dollar, giving U.S. exports a competitive edge. The U.S. Federal Reserve recently indicated that a weak dollar suited U.S. interests just fine at the moment, a move that infuriated European leaders.

Third world access to essential drugs, especially expensive anti retro-virals to combat AIDS is another upcoming battle.

The WTO conference in Doha in 2001 called for the provision of essential drugs to developing countries at affordable prices — generic drugs, for the main part. Since then Europe and the U.S. have been locked in a bitter dispute over patents and commercial rights with the U.S., pushed by its powerful pharmaceutical lobby made up of 144 drug giants, blocking a compromise proposal.

To counter any criticism the U.S. has announced a unilateral gift of $15 billions over five years to fight AIDS. This is a clever means of side-stepping the issue and obliging European nations of following its lead.

Europe's decision to boycott U. S. genetically modified foods is another major point of friction. Brussels says it will allow U.S. GM foods this autumn after an elaborate labelling and identification method has been put into place.

The U.S. feels Europe is using dilatory tactics. The U.S. is also likely to continue its promotion of GM foods as the ideal solution against world hunger.

And finally Iraq. Sharp differences exist between the U.S. and major European power about how to proceed in Iraq. It is unlikely though that France will attempt to pick up this particular gauntlet.

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