U.S. Trade Representative Discusses Agriculture at AGOA Forum

Zoellick decries certain European attitudes on subsidies and FTAs

Phoenix, Mauritius -- U.S. Trade Representative Robert Zoellick, leader of the 25-member U.S. delegation attending the second U.S. Sub-Saharan Africa Trade and Economic Cooperation Forum, told journalists January 15 that stalling on lowering agricultural subsidies was counterproductive and undermined cooperative attempts to help Africans compete in world markets.

During a conversation with journalists after the opening of the official government segment of the forum, held on the campus of the University of Mauritius, Zoellick took exception with what he claimed was a statement defending agricultural subsidies by French Agriculture Minister Herve Gaymard in a recent magazine article.

Before he spoke to the press, Zoellick told the ministers from 38 sub-Saharan Africa countries attending the forum that the United States has worked at the World Trade Organization (WTO) to advance "bold market access proposals in all three core areas: agriculture, goods, and services. We believe Africa would benefit greatly from reducing or even eliminating subsidies and other barriers to trade."

Zoellick told journalists he had no quarrel with attempts by the European Union to formulate a common agricultural policy. "I have great respect for [EU] commissioners [of trade Pascal] Lamy and [of agriculture Franz] Fischler. They're trying to move this in the right direction but you've got member states there that are going to basically block them."

He insisted, however, "Part of what we need to do is get a message from the developing world to countries like France that say: 'the age of colonialism is over, thank you. We would like to be able to be free to sell our products.' The Americans are willing to cut their subsidies; all they're asking is that the Europeans cut their subsidies which are three to four times as high to get a little closer to the American subsidies."

Zoellick also commented on what he described as an erroneous view by some that Europe had a right to sign free trade agreements with Africa, while the United States did not.

On January 14 the Reuters news service reported that French Foreign Trade Minister Francois Loos "cautioned Morocco on Tuesday against negotiating a free trade agreement with the United States while seeking better trade deals with the European Union." He was reported to have said, "You cannot aim at both things; you have to decide which one you choose."

Loos spoke at a news conference at the end of a two-day visit to Morocco, where he told Reuters, "there may be a contradiction in their [Moroccans] approach." According to the news service, Loos told the Moroccans, "You cannot say you want a closer partnership with the EU and at the same time sign a free trade agreement with the U.S. This is a political choice deprived of any economic foundation. It can be a waste of time."

According to Reuters, Loos said Moroccans should also realize that conditions offered by the EU might be more advantageous. "Caution! The constraints with the U.S. can be more difficult," he said.

Zoellick told journalists, "With all due respect, this is a European view left over from the age of colonialism and mercantilism. The suggestion was that Morocco should not have a free trade agreement with the United States but only with Europe. I have never said anything to that degree when Europe goes to Latin America [for trade negotiations] or elsewhere. In fact, quite to the contrary, I say we need more competition."

On the larger question of America's right to negotiate trade agreements in Africa, the U.S. official emphasized, "If Europe does free trade agreements around the world, I welcome it. If we're too slow, it's our problem not anybody else's."

The forum in Mauritius in the second in a series that began in 2001, as provided for by the U.S. African Growth and Opportunity Act (AGOA) passed in 2000, which aims to foster African development by offering quota- and tariff-free access for African goods to U.S. markets. Asked if the United States planned to "replace AGOA with WTO," the U.S. official said trade agreements need not be mutually exclusive but could work in harmony, especially to help developing nations catch up to globalization.

Having just come from South Africa where he had discussed the start of free trade agreement negotiations with the Southern African Customs Union, Zoellick said, "the two [AGOA and a US-Southern Africa trade agreement] would be mutually supportive; they give a start to less developed countries, and here Europe and others have [also] done things."