US farm leader criticises 'free riders' in WTO talks

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CHANTILLY, Va, Nov 27 (Agencies): A long-awaited world trade deal will remain out of reach until developing countries agree to open their markets to more US farm goods, the head of the largest US farm organisation said yesterday.
Bob Stallman, president of the American Farm Bureau Federation, said the talks are stuck because many developing countries want the United States to reduce its farm subsidies without cutting their tariffs in return.
The world trade talks, launched six years ago in the capital city of Qatar, are officially known as the Doha Development Agenda because of their emphasis on using trade reform to help lift countries out of poverty.
"But too many developing countries decided 'Oh, this is a free ride for us. We're going to get something and we're not going to have to give up anything in return.' That's problem number one" with the negotiations, Stallman said in a speech to the Virginia Farm Bureau Federation.
The United States is under pressure from developing countries like Brazil and India in the World Trade Organisation (WTO) talks to cap its annual spending on trade-distorting farm subsidies at $13 billion.
Washington spent $18.9 billion on those programmes in 2005, although the exact level varies from year to year.
The chairman of the WTO's agricultural negotiating group is expected to release a new draft text soon that could become the basis for final negotiations. Countries also are trying to reach accords on opening industrial goods and services market to more trade around the world.
Meanwhile, India said yesterday it is willing to show "flexibility" for the success of the Doha round of WTO negotiations, but wants the developed countries to make forward movement as well.
"India will obviously show flexibility to achieve such an outcome, but the onus for movement is clearly with large developed countries," Commerce and Industry Minister Kamal Nath said here.
During a meeting with the Netherlands Foreign Affairs Minister Frank Heemskerk Monday, Nath said India looks forward to conclusion of the Doha round in the next one month or at the latest by the early part of next year.
He said India has been engaging with fellow member countries of the WTO.
However, "such a conclusion can only be possible if we are faithful to the mandate and the outcome reflects a clear balance between market opening and the development needs of majority of the membership," he said.
Nath further said a third round of talks on the India-EU free trade agreement (FTA) would be held early next month in Brussels. While common areas have been identified for the FTA, discussions have been held in areas of intellectual property rights, geographical indications, dispute settlement and competition policy.
Meanwhile, Thailand needs to restore investor confidence and boost competitiveness by pursuing structural reform including privatisation, the WTO said yesterday.
The Southeast Asian country, which has recently suffered a slowdown in GDP growth, would benefit from further trade openness, the WTO said in a review of Thai trade policy.