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IRAQ TENSIONS POS THREATS TO WTO TALKS
calendar11-03-2003 | linkNULL | Share This Post:

WASHINGTON, March 7 (Reuters) - The strong disagreement between theUnited States and two leading members of the European Union over apossible war in Iraq could damage efforts to reach a new world tradeagreement, analysts said on Friday."Certainly it doesn't make it easy to concentrate minds on tradenegotiations," Hugo Paemen, former EU ambassador to the United States,told Reuters. "It's not the right atmosphere."But Paemen said negotiations on the Doha Development Agenda were introuble even without strained relations over France and Germany'sopposition to a U.S.-led attack on Iraq.Missed negotiating deadlines continue to pile up, setting the stage fora "quite messy" World Trade Organization meeting in September in Cancun,Mexico, when countries are to begin a 15-month push to finish the talks,he said.Susan Esserman, a former deputy U.S. trade representative, saidgeopolitical tensions made negotiations more complicated, even thoughcommercial interests are the driving force behind trade agreements."It's impossible to completely separate the trade issues from theforeign policy issues," Esserman said. "That's because ultimately you needpolitical will to reach a consensus and that does depend on continuinggood will among countries."The outpouring of sympathy for the United States after the Sept. 11,2001, attacks on the World Trade Center and the Pentagon created anatmosphere of cooperation that helped launch the world trade talks inDoha, Qatar two months later, she said.In the same way, tensions over Iraq could make it harder to reach aagreement.During a visit to Washington this week, EU Trade Commissioner PascalLamy said he will not let the Iraq situation "contaminate" the EU's tradeand investment relationship with the United States."Trade is one area where the European Union has a single policy and Ithink we have to build on that," he said.U.S. Trade Representative Robert Zoellick worked this week not to let adispute over the EU's moratorium on approval of new biotech food productsadd to the tensions.Rather than launch a complaint at the WTO, as many lawmakers demanded,Zoellick said he wanted to build a coalition of nations to join with theUnited States in protesting the EU's policies against genetically modifiedfoods.