The United States and European Union have made significant steps toward reaching a deal on World Trade Organization (WTO) rules and reform, an official at the office of the U.S. Trade Representative (USTR) said Monday. “While we are making progress, there is no deal at hand,” USTR spokesman Sean Spicer told reporters. At the heart of the current transatlantic disagreement is the issue of agricultural trade and subsidies. According to media reports, the European Union has proposed cutting its tariffs on foreign agricultural imports by around 54 percent, while the United States has proposed lowering domestic farm subsidies by $17 billion. USTR Susan Schwab refused to confirm reports of a near breakthrough, but if true, the concessions by both sides would be a major step forward. U.S. officials have also insisted that no agreements can be made until Brazil and India-both major emerging economies-make similar concessions on tariffs. Both Schwab and EU Trade Commissioner Peter Mandelson are set to attend World Economic Forum at Davos, Switzerland this week, during which the major international trading partners will push for a final breakthrough on reducing tariffs, subsidies and other barriers to global commerce.
