Cancun, Mexico
September 14, 2003

Pascal Lamy, EU Trade Commissioner
Press Conference closing the World Trade Organisation 5^th Ministerial Conference
5^th WTO Ministerial Conference

I do not want to beat about the bush: Cancun has failed. This is not only a severe blow for the World Trade Organisation but also a lost opportunity for all of us, developed and developing countries alike. We would all have gained. We all loose. We will not play the blame game and we will remain open to reviving this process.

We came here to reach 50% of the negotiation and we are back to 30%.

The EU came here determined to make things work. The Doha Development Agenda is the EU's top trade policy priority as you all know. We listened during the course of this week, we learnt and we adjusted our proposals. What was finally on the table had the potential for a fair deal for all the membership, a potential deal going beyond what any of us would have thought possible six months ago. This deal would have brought us a major step closer to delivering on the promises of the Doha Development Agenda.

Let me just recall the EU's proposals in this respect:

• On agriculture: the EU stood ready to eliminate export subsidies on products of interest for developing countries, we offered to significantly reduce trade distorting support to farmers, after a painful process of internal reform of our agricultural policy. We were ready to significantly cut down our tariffs and open our markets to farm imports. An agreement on agriculture was within reach after moves by key players, far beyond what we would have thought possible in July.
• On industrial products, our offer was designed to maximise developed countries concessions while allowing great flexibility for developing countries and sheltering the world poorest countries.
• On services, the EU responded to the requests from a large number of developing countries to open its borders to the temporary movement of professionals from third countries
• The EU also tabled specific proposals to give practical effect to special and differential treatment for developing countries
• On Singapore issues, which are key to harnessing world trade, we played a constructive role, we moved on timing, on scope as well as on content of any possible agreement. We moved before Doha, in Doha and since Doha and again in Cancun. After intensive talks these last days and in order to forge consensus, we even accepted the chair's proposal to drop two issues and retain trade facilitation (key to small and medium companies) and transparency in public procurement.
• On cotton, the EU listened carefully to the requests coming from African countries and said we would be ready to even eliminate the most trade distorting support, on top of what we already do, ie zero subsidies, duty free and quota free access. These contributions remain on the table.

Why has this not worked?

Despite the commitment of many able people, the WTO remains a medieval organisation. I said this in Seattle, got a lot of flak and I have to repeat it here. The procedures and rules of this organisation have not supported the weight of the task. There is no way to structure and steer discussions amongst 146 members in a manner conducive to consensus. The decision-making needs to be revamped. The EU remains committed to a strong rules-based multilateral trading system and will continue to work in this direction within the WTO.

Thanks a lot for your attention

Dr. Franz Fischler
Member of the European Commission  responsible for Agriculture, Rural Development and Fisheries
The breakdown of the Cancun Ministerial Meeting
5^th WTO Ministerial Conference

I regret that it was impossible to reach consensus on the Singapore issues. This is the more regrettable because the gaps on farm trade liberalisation have finally started to narrow down. A deal on agriculture would have been possible. The EU was ready to do the necessary to make it possible. We have offered significant and targeted measures to give developing countries a better deal. We have accepted the approach that rich countries have to shoulder the major part of the burden of liberalisation.

All these offers fully remain on the table.

Whatever happens to the Doha Development Agenda, one thing I can promise : For us, there is no way back. Europe will continue the path of agriculture reform we have embarked upon. We will continue to change our farm policy to make it more competitive, trade-friendly and more in tune with the interests of the poor countries, European farmers and citizens.