Posted on 12-11-2002

Free Trade Dominates Environment
Reuters, Monday, 11 November, 2002

U.S. Trade Representative Robert Zoellick this week warned the European
Union that its desire to link international environmental agreements to the
rules for free trade threatened progress in world trade negotiations. "If
Europe keeps pushing things in the environmental area that look threatening
to the developing world we're not going to be able to move forward on this
thing," Zoellick told the Council on Foreign Relations.

His comments came during a joint question-and-answer session with EU Trade
Commissioner Pascal Lamy. Lamy told the foreign policy audience that the EU
was pushing for language to clarify how multilateral environmental
agreements interact with World Trade Organization rules. "We Europeans feel
these two things should be on the same footing," Lamy said. "If it were
only a European view I would say environment should trump trade rules, but
since we live on the same planet I would say they have to be on the same
footing."

Developing countries are generally wary of any attempt by rich countries to
insert environmental issues into trade agreements. They fear the measures
could be used by the developed countries as an excuse to block their products.

Despite Zoellick's concern about the EU position, the Bush administration
also faces some pressure at home to include both labor and environmental
concerns in trade agreements. Meanwhile, Zoellick said the United States
would present "an aggressive proposal" later this year for reducing trade
barriers for non-agricultural goods. Many developing countries that want
increased access to the U.S. textile market are keenly waiting to see what
the United States will propose in that area.

WTO members launched a new round of world trade talks a year ago this month
in Doha, Qatar, with the goal of finishing by January 2005. After their
remarks to the Council on Foreign Relations, Lamy and Zoellick met
privately to discuss progress in the round and a long list of bilateral
trade disputes.