Trade Talks
January 9, 2007
The United States and European Union have been unable to overcome disagreements over farming subsidies and tariffs when the last round of international negotiations took place in Geneva in July.
"We both recognize that the best way to help impoverished nations is to complete this Doha round and to encourage the spread of wealth and opportunity through open and reasonable and fair trade," Bush said, referring to the capital of Qatar, which hosted the first round of the World Trade Organization negotiations in 2001.
Barroso emphasized the need to move quickly on reaching deal and said he and Bush ordered their negotiators to reach a "solution as soon as possible." Barroso appeared upbeat after meeting with Bush for about an hour, saying the two sides had realized action had to be taken.
"We are really at defining moment," Barroso said.
The ill-starred pact, which seeks to make it easier for developing countries to export products to richer nations like the United States and those in Europe, was launched in 2001 but has repeatedly stalled.
Agriculture has been a main sticking point for the agreement and despite Monday's positive talk, there is still deep-seated discord over farm subsidies. US subsidies now top $20 billion (15.3 billion euros) a year, which displeases the Europeans.
However, subsidy reform is a sensitive proposition for American farmers. They say they want to see tariffs fall in Europe as well as in key developing countries like India and Brazil.
Breakthrough still possible
The current dispute led to a suspension in July of the talks. Earlier Monday, German Foreign Minister Frank-Walter Steinmeier said in Berlin that he believes there is still a chance of a breakthrough.
"Despite all the difficulties, we have embarked on a path that makes an agreement appear possible," Steinmeier said after talks with the director general of the World Trade Organization (WTO), Pascal Lamy.
Steinmeier said Germany would use its role as current EU president to work for a resumption of the talks.
"We need to take advantage of the window of opportunity in the weeks ahead in order to make concrete progress that could lead to a breakthrough," the foreign minister added.
European Trade Commissioner Peter Mandelson was quoted Monday as saying the Doha round was on the brink of failure and will only succeed with Bush's support.
During Barroso's Washington visit, he and Bush also discussed the Israel-Palestinian conflict, Iran, Syria, Iraq and the ethnic conflict in Sudan's Darfur region.