| WTO talks receive push as US and EU consider farm subsidy deal |
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Frozen global trade talks between the United States and European Union might finally thaw and see the light of the day as both factions have offered plans to slash their multibillion dollar subsidies to the beleaguered issue of subsidies to farmers in their respective countries.
While Rob Portman, U.S. Trade Representative proposed plans, stating that Japan and the E.U. had to go further in affecting cuts in agricultural aid to farmers, the E.U. presented proposals for sharper cuts in farm subsidies. Australian Trade Minister, Mark Vaile, was quoted saying, “It's a step in the right direction. We now need to push forward to achieve real progress in lowering barriers to agricultural trade.”
However, essential reforms would be quite hard-hitting for farmers for both parties since they have always benefited from liberal government aids.
Over the WTO talks to be held in December 2005 in Hong Kong, all 148 members of the WTO will be expected to approve of a global trade deal during negotiations in the ‘Doha round’. Nevertheless, there was a deadlock between the E.U. and the US regarding the farm subsidy issue, thereby holding up talks.
The Doha round got its name from the place of its inception in 2001, i.e. the Qatari capital. Aimed at strengthening and enhancing the global economy by reducing trade barriers throughout all zones, the Doha round will come to a close next year.
Portman referred to the changes adopted by America in its farm programs as taking “some pain”, saying that the U.S. would relent if other “trading partners deliver tangible market access for U.S. agricultural exports.”
He clarified that a 60% cut would be put on farm subsidies, but on the condition that the European Union and Japan carried out as much as 80% in their subsidies to farmers, as they received larger amounts of subsidies. In addition, the US offer asked for all subsidies devoted to agriculture to be exterminated by the year 2023.
Likewise, the E.U. Trade Commissioner, Peter Mandelson offered to reduce farm subsidies by 70% in wheat, dairy products as well as rice, which was 5% more than what it had promised earlier. Others like the United States would make proportional, albeit lower reductions, according to the E.U. proposal. Mandelson added that it was high time the issue was resolved, saying “If we do not advance this negotiation in concrete terms this week -- and among ourselves today -- we will have to acknowledge that we may simply run out of time for Hong Kong.”
Still, Mineichi Iwanaga, Japan's agriculture minister did not in the least agree to the US offer saying that there was a huge discrepancy “between the U.S. proposal and our position because the [U.S.] domestic support reductions are insufficient.”
Celine Charveriat from international aid agency, Oxfam also seemed to support Japan’s stand, and referred with much suspicion to America’s ulterior motives behind this ‘shrewd’ move. She said, “What looks on the surface like a genuine attempt to move the talks forward is in fact a very clever piece of manoeuvring by the U.S. The devil is in the details, and these details are very devilish indeed.”
Posted
on : Wed, 12 Oct 2005 04:05 GMT | General News
By : Pippa Fielding
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