US, Australia welcome EU's new trade proposals 

US Trade Representative Robert Zoellick has supported the EU's proposal of 10 May to show flexibility on agricultural export subsidies. Australia's trade minister Mark Vaile underlined that "A clear commmitment to eliminate all export subsidies would be a major improvement for the trading system".

On 10 May EU Trade Commissioner Pascal Lamy and Farm Commissioner Franz Fischler sent an open letter to their WTO counterparts highlighting the EU's negotiating position in the ongoing round of trade negotiations. The three points mentioned in this letter are the EU's willingness to make concessions on agricultural export subsidies if a balanced overall package on agriculture can be reached and if trading partners follow suit. On the so-called 'Singapore issues', the EU would begin negotiations where there is an agreement to do so (at the moment only on trade facilitation). No consensus is in sight yet on investment and competition. The third point highlighted in the letter is a package of concessions for the poorest WTO members.

Negotiations in the so-called 'Doha round' broke down at the Cancún Ministerial meeting on 10-14 September 2003. The main reasons largely cited for the failure are a lack of agreement on agriculture and the EU's insistence for negotiations on the Singapore issues to begin.

At a meeting on 29 April, WTO members have decided to aim for agreements at a framework level in July in view of the upcoming US presidential elections and changes in the European Commission in November. In order to achieve this objective, a general agreement would be necessary by the end of May to have an agreed text before the WTO goes on summer break in August.

A mini meeting of some 30 trade ministers will be held on the margins of the OECD Council meeting in Paris on 14 May. The WTO's General Council meets on 17 May.