Geneva: Ambassadors from the 105 member nations of the General
Agreement on Tariffs and Trade rounded on the EC and the US in Geneva
yesterday for stalling the deal.
They instructed Mr Arthur Dunkel, director-general of Gatt, to make
personal approaches to both sides in Washington and Brussels in a late
attempt to avert a world trade war.
They met in an air of crisis as Mr Delors said that he felt a deal
could be agreed in time for the Edinburgh EC summit next month. If this
were achieved it would be the first piece of good news for the
much-criticised British presidency of the EC.
Mr Dunkel, who called yesterday's emergency meeting to gain formal
endorsement for his initiative, made the point that he will not be
talking separately with the French.
His reasoning is that he will be dealing with the 12 member states of
the EC at community level but his firm rejection of a separate meeting
with the French, the most conspicuous opponent of a deal, was taken as a
further sign that the rest of the world is fast running out of patience
with Mr Mitterrand's Government and its refusal to face down its
militant farming lobby.
Mr Dunkel told yesterday's meeting of Gatt's trade negotiating
committee (TNC) that failure to settle the EC-US dispute would not just
scupper the Uruguay Round which has lasted seven years so far but might
also undo existing agreed trade customs.
''The present situation is even more critical,'' he said. ''Unresolved
and escalating trade disputes have put under threat even the existing
multilateralist trading system which is the very foundation of our
ongoing efforts in the Uruguay Round.
''Unless the present circumstances change dramatically any further
work programme put in place by the TNC is not likely to achieve concrete
results and will, on the contrary, destroy the credibility of the Geneva
process,'' he argued.
He sounded a note for sympathy for smaller trading nations angered by
their own inability to force the hands of the EC and the US. An
overwhelming majority of participants expressed ''deep concern and
helplessness'', he said, because the two biggest trade blocks had failed
to provide the trigger to multilateral progress in the final stages of
the Uruguay Round.
''In short, there is a deep sense of crisis since it appears that the
Uruguay Round itself is in danger of being lost.''
There were clear signs of international impatience with the antics of
the two major trading blocks both of whom pay, and sometimes try to
hide, huge subsidies to farmers who form a formidable and rich political
lobby.
Australia led the approach of the smaller nations to the G7 inner core
pointing out that the deadline for agreement on the Uruguay Round -- the
last day of this year -- was now in severe danger.
Perhaps for French consumption, the 29 argued that a Gatt deal would
benefit all sectors including agriculture. Although France would lose on
agriculture it has been argued that it would gain more than most in
other areas.
There was no significant input from the French in Geneva. They are
being bombarded from all sides now for a change of heart. Chancellor
Helmut Kohl of Germany has made it clear he will not support the French
hard line and Mr Mitterrand is now on strained terms again with Mr Major
because of the Prime Minister's latest procrastination on Maastricht.
Meanwhile, Commonwealth secretary-general Emeka Anyaoku urged Mr Major
to consider meeting US leaders to try to break the deadlock. In a letter
to the Prime Minister, he said an early solution was essential to the
Commonweath.
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