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Subject: France Threatens Global Trade Pact;Premier Vows Veto to Counteract Europe's
Date: Thu, 26 Nov 92 10:44:02 EST
Message-ID: <40.1992Nov26.104402@AmeriCast.com>
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France Threatens Global Trade Pact;Premier Vows Veto to Coun-
teract Europe's Farm Accord With U.S.<By William
Drozdiak=Washington Post Foreign Service= PARIS, Nov. 25 - The
French government escalated pressure on its European partners to-
day by threatening to veto any global trade agreement that in-
cludes the farm subsidy deal reached last week by representatives
of the United States and the European Community.

As outraged farmers clashed with riot police outside France's Na-
tional Assembly, Prime Minister Pierre Beregovoy told the packed
legislative chamber that the terms of the farm compromise were
unacceptable and France would seek a meeting of EC foreign and
farm ministers "as soon as possible" to emphasize its opposition
to the pact.

"The government will exercise its veto on any accord that is con-
trary to the interests of France," Beregovoy said, adding that
President Francois Mitterrand fully supported his government's
willingness to "invoke the right to protect its fundamental in-
terests."

Beregovoy warned his European partners that France was ready to
veto even if it jeopardized Mitterrand's cherished crusade for
European unity. "If there has to be a crisis on this point, then
so be it," he declared.

Seeking a broad national consensus behind his government's rejec-
tion of the farm deal, Beregovoy called for a confidence vote -
which he won, 301 to 251, after lengthy debate.

Outside the assembly, thousands of farmers descended on the
streets of the capital to dramatize their plight. Incomes for
France's 1.7 million farmers have plummeted in recent years,
forcing many of them into bankruptcy.

About 50 invaded the Paris stock exchange in the morning, dis-
rupting business by waving banners and setting off firecrackers.
Later, about 3,000 farmers tried to march on the assembly, but
were repelled by volleys of tear gas and riot police wielding
truncheons and plastic shields.

Police reported that 47 members of the security forces were in-
jured and 12 farmers were arrested for throwing rocks and bot-
tles. But the widespread violent riots that some farm representa-
tives had warned about did not take place.

Over the last few days, farmers have singled out McDonald's res-
taurants and a Coca-Cola plant to protest U.S. threats to unleash
a trade war unless the Europeans agreed to a compromise. The
threat of trade sanctions was lifted with last Friday's accord.

Addressing the United States, Beregovoy urged the Americans to
"respect the interests of Europe" by recognizing that their Euro-
pean allies cannot accept terms of trade that are based on
"unequal agreements."

The accord announced Friday in Washington and Brussels placed the
Socialist government in an anguishing dilemma: Either it risks
turmoil among the farmers by accepting the accord or it triggers
a full-blown crisis within the Community by blocking the larger
trade deal.

Political commentators have speculated that the unpopular Social-
ist government wants to postpone implementation of any painful
farm revision beyond the March elections, in which current polls
indicate a loss for the ruling party. That way, an entering con-
servative government would have to bear the blame for implement-
ing its terms.

Referring to national elections scheduled in March, Beregovoy
said "it is important that our partners know that the
government's position is that of France and that forthcoming pol-
itical elections, whatever the result, will not modify it."

The breakthrough compromise on farm subsidies was expected to
clear the way for completion of a global trading agreement in
negotiations known as the Uruguay Round by the end of the year
that could inject up to $200 billion into the world economy.
Friday's accord calls for the European Community to slash subsi-
dies paid to its grain exporters by 21 percent and to take 10
percent of its land used to raise oil seeds out of production.

Beregovoy said France wanted a successful conclusion to the
Uruguay round talks, which have dragged on for six years. He held
out hope that some kind of change or compensation could be made
in the farm deal to permit France to approve an overall trade
deal.

But if no changes were made, he said, France ultimately would ex-
ercise its veto. He asked for understanding from other European
states, noting that France has backed demands for compensation in
the past by Germany, Britain, Spain and other members of the Com-
munity.

While nearly every other EC government welcomed the oil-seeds
deal, France insists that it would inflict intolerable harm on
its farmers by imposing additional sacrifices beyond those ac-
cepted by Community governments earlier this year.

EC negotiators were instructed not to surpass those limits in any
agreement with the United States. A study prepared by the EC's
executive commission, to be released Thursday, will contradict
the French view and show that the farm subsidy agreement falls
within those bounds, officials in Brussels said.

Nonetheless, French officials said they were confident of con-
vincing their European partners that the draft accord with the
United States must be rejected because it would require further
changes in the EC's farm reform package.

Even though France currently is isolated on the issue, Foreign
minister Roland Dumas told a cabinet meeting today that Italy,
Spain and Belgium were nurturing fresh doubts about the benefits
of the transatlantic farm compromise, a French government spokes-
man said.<02:32 11-26C9999-----

Copyright 1992, The Washington Post.  This story is from the
Washington Post's Capitol Edition On-Line and is not to be ar-
chived or redistributed.

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