EU trade chief warns of multilateral fallout from WTO failure[fr][de] 

"If the DDA [Doha Development Agenda] negotiations fail, the resulting fallout and blame game will make everything else we are seeking in the multilateral system more difficult," Mandelson said, citing negotiations on climate change as an example, according to the International Herald Tribune newspaper. 

"If, after seven years, you cannot complete a trade round, what does that say for your prospects of reaching a deal on climate change?," he asked. 

The commissioner told journalists that he rates the prospects of achieving a global trade pact in the near future at 50-50, but stressed that a united EU front would be crucial in achieving an optimal outcome. 

The statements come after French President Nicolas Sarkozy lashed out at Mandelson, accusing him of contributing to the 'no' result in the Irish referendum on the Lisbon Treaty by threatening the future of European agriculture in the WTO talks (EurActiv 20/06/08). 

France – a staunch defender of the EU's Common Agricultural Policy, which includes big subsidies and tariff protection for the country's many farmers – took over the EU's rotating presidency on 1 July and does not intend to allow the Commission to make any concessions that could put its agricultural sector at risk. 

Sarkozy is notably attempting to leverage the current global food crisis to emphasize the need for the bloc to remain a strong agricultural power. He has strong support from the EU's farm lobby. "I find it impossible to understand how Commissioner Mandelson can press for a trade agreement which will make consumers in the EU even more dependent on imports for their basic food supplies at a time of a world food crisis," said Jean-Michel Lemétayer, the president of the European farmers' organisation COPA, warning of "serious knock-on effects for the food sector and for employment". 

The French Presidency has notably convened a meeting of European trade, development and foreign ministers on Friday 18 July to prepare for the WTO ministerial meeting next week. The meeting will review the latest negotiating drafts on agricultural and industrial goods, presented by WTO mediators on 10 July. Ministers could use the gathering to reduce Mandelson's room for manoeuvre. 

But Mandelson has insisted he already has a clear mandate. "I don't need a new one and it doesn't need to be changed. I have always operated within the member states' mandate and will continue to do so," he said. 

Mandelson has the backing of Britain, Sweden, the Czech Republic, Estonia, Latvia and Slovenia. In an open letter to the IHT, the six trade ministers argued: "Now more than ever, EU unity is essential […] We cannot afford to miss the chance to counterbalance the present negative trends in world economic affairs. The credibility and respect of the whole multilateral trading system must be maintained."