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WTO farm trade proposals get lukewarm welcome

Thursday, 26 July 2007


GENEVA, July 25 (AFP): World Trade Organisation (WTO) members including the United States and European Union gave a lukewarm welcome yesterday to new proposals aimed at salvaging WTO talks on reducing barriers to agricultural trade.
The two trading giants said some elements were unacceptable, after a first meeting of the WTO's 150 members here to discuss the detailed technical proposals made a week ago by the chief negotiator guiding the crucial farm talks.
The negotiations are part of the multilateral Doha round, launched in the Qatari capital in November 2001 with aim of tearing down barriers to global commerce.
Echoing comments by other trading nations US agriculture negotiator Joseph Glauber told journalists the "draft modalities" marked an overall improvement.
However, he also highlighted significant shortcomings-in the US case largely on the extent of proposed cuts in import duties on farm produce.
"A lot of work has been done in the export competition and domestic support, in contrast with market access... a significant portion on market access is just lacking," Glauber told journalists.
Washington is trying to balance any concessions it makes in reducing the amount of support paid out to US farmers with cheaper access to agricultural export markets in other nations.
The proposals on agriculture effectively suggested that Washington should rein in overall trade-distorting support or subsidies for US farmers to between 12.8 billion and 16.2 billion dollars a year.
Some types of domestic subsidies do not affect international trade, according to the WTO.
Glauber said that Washington was ready to make an effort on domestic support, but he said a figure in the low teens was "out of the question."
Meanwhile, China today gave a lukewarm response to new proposals on agriculture and industry tariffs aimed at restarting stalled global trade talks.
The WTO's chief agriculture negotiator last week proposed in Geneva that trade distorting farm export subsidies be cut to below 16.2 billion dollars a year, compared with 19 billion dollars now.
China's Commerce Ministry said Wednesday the proposals were a first step.
"The proposals are positive to moving the multilateral talks forward but there are still a few improvements to be made in the content," spokesman Wang Xinpei told a a press briefing in Beijing.
Wang said China was also studying the suggested proposals to reduce industrial tariffs charged by 27 developing nations to less than 23 per cent.
Last week, Brazil said the fresh proposals for a deal on agriculture and industry tariffs were a step forward while India believes said it was a good basis for further discussion.
China as a global commercial power has remained surprisingly reticent in the WTO, drawing criticism as it has allowed Brazil and India to spearhead the interests of developing nations around the world.
Beijing, which joined the WTO in late 2001, has also been singled out by the United States and the European Union for its industrial subsidies, intellectual property rights protection and customs duties on spare parts for cars.