New draft texts on agriculture and industry are a step forward in world trade talks but the range of tariff and subsidy cuts they propose are too tough, European Union Trade Commissioner Peter Mandelson said.

In an interview with Spain’s el Economista newspaper on Saturday, Mandelson said the lower end of the proposed range of cuts would not really help the World Trade Organisation reach a free trade agreement.
“The top ends of the ranges are too ambitious and the lowest are not enough to make sure the negotiations result in satisfactory liberalisation,” Mandelson was quoted as saying.

The drafts proposed this week say the EU should cut its highest agricultural import tariffs by 73 per cent against its offer of 60 per cent.

WTO mediators also proposed that U.S. farm subsidies be capped at between $13 billion and $16.4 billion, compared with the $17 billion Washington has offered.

Cut tariffs
Most developing nations would have industrial goods import tariffs of 12 per cent on average, much lower than the ceiling countries such as Brazil and India have sought, while developed countries would cut tariffs to below 3 per cent on average. “I will have to negotiate hard to defend Europe’s interests,” Mandelson said. “They (the texts) have helped put pressure on all of us but we have to keep calm.”

High-time for talks
Mandelson said, he saw signs that Latin America’s largest economy wanted to reach a deal but added that, with U.S. elections looming, time was ticking for the talks.

“We must get our positions to converge in the autumn or there’s no way we’ll manage it for a few years,” he said.

Mandelson also warned against any corporate protectionism after German Chancellor Angela Merkel proposed that Europe should look at ways of protecting companies from potentially politically motivated foreign funds.
“It worries me that the EU might give the image of closing itself to foreign investment,” Mandelson pointed out.