Trade Negotiators Near Agreement on Agriculture

December 3, 1999

Trade negotiators in Seattle moved substantially closer to an agricultural agreement today, as the European Union abandoned its demands that trade ministers endorse the word "multifunctionality" and the United States accepted something less than the simple "elimination" of export subsidies as a goal.

As usual in the last stages of a complex negotiation, the actual words being debated by trade officials were a moving target today. In an indication of how frequently things were changing, U.S. negotiators referred to one document as the "one o'clock text."

Highlights of the negotiated text at this point include the following:

The European Union agreed not to use the word "multifunctionality," though Japan continues to favor use of the term. Instead, the text will probably refer broadly to "non-trade concerns."

Language on market access (tariffs) no longer says that there will be "no a priori exclusions," but calls for market access negotiations to be "comprehensive," leading to the "broadest possible liberalization."

On export subsidies, negotiators may call for "substantial reductions in all forms of export subsidies ... in the direction of progressive elimination of export subsidies." EU officials will accept this language, according to U.S. negotiators.

The declaration will call for "substantial reductions" in domestic subsidies. In some doubt is whether these subsidies will be limited to those that are "trade-distorting."

Despite heated opposition from environmental groups, agreement seemed likely on language that will create a working group on biotechnology. Still in doubt, though, was the group's mandate.

Officials planned to meet throughout Thursday night, with the hope of concluding the negotiations in time for trade ministers to approve a final document Friday afternoon. According to U.S. officials, the Seattle convention center where delegates have been meeting is already booked for another convention starting Saturday morning. The implication was that the talks have a built-in deadline, but trade negotiations have been known to run past their deadlines.