Beginning of February, few manufacturing industry associations: ACEA (Automobile), Businesseurope, CEFIC (Chemicals), CEPI (Paper), EFPIA (Pharmaceuticals), EUROMETAUX (non ferrous metal), ORGALIME (machinery) & EURATEX (Textiles) were invited to attend a meeting called by the EC Commission on the DDA. The main aim was to provide industry with a common understanding of the NAMA Draft Modalities text as seen by the Commission. Unsurprisingly and since the outset the Commission made clear that very little of those draft modalities resulting from July 2008 negotiations will change in so far EU member states do not want to undermine  the agriculture draft modalities as they stand today. Country specific provisions and sectoral approach still to be agreed this year. Technical work at WTO level will be carried out this year. The results are not satisfactory for our industry.

Summary of Commission presentation

Commission started the presentation stressing that there is no way to redress the equilibrium between agriculture and draft NAMA modalities despite the wish of some EU Member States.  Those draft modalities on NAMA, once agreed will be applied only by 41 WTO members’ countries as the remaining members will benefit from exclusions or tailored measures. Only few elements need to be fixed:

1. Special treatment for three countries seeking more flexibility (Argentina, South Africa & Venezuela): South Africa: the solution is nearly found and should be agreed politically. For the two other countries the EU is not very much concerned by this except that Commission is upset by the fact that to please Mercosur, who had a problem with Argentina, the EU and the USA accepted to increase the flexibilities to which Brazil did not respond in trying to convince Argentina not to oppose the draft modalities text.
2. The sectoral approach: this part of the negotiation is complex and nearly in a deadlock unless emerging countries accept to formally support some of the sectors listed by the chair in the draft modalities. There is up to now no uptake from the emerging countries on this issue as they consider that sectorals are not mandatory since the Hong-Kong WTO Ministerial decision[1].

   As far as textile and clothing is concerned there is little or no apparent interest except from China and few other Asian countries. India, Brazil and other Latin American countries do not show intentions to participate in it.

   Commission underlined that:

Final Considerations

EURATEX reacted quite strongly to this presentation (see EURATEX letter to Commissioner Ashton) stressing that the result is not acceptable for the textile and clothing industry. Interestingly no sector opposed this stance but Commission reacted defending the results achieved so far.

Euratex will remain vigilant to ensure no further blow will be imposed on the textile and clothing industry during the “technical work” expected this year. It is self-evident that WTO Director General P. Lamy will push for an agreement on the modalities to be reached this year.

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