MercoPress. South Atlantic News Agency

“A minor triumph for multilateralism”

After five days of tough negotiations in Geneva the 147 members of the World Trade Organization (WTO) reached a breakthrough that will cut rich countries farm subsidies in exchange for developing countries opening markets for industrial goods.

However no time frame was set and WTO Director General Supachai Panitchpakdi described the agreement as "a minor triumph for multilateralism", with much to be done. Full negotiations are scheduled to start in September.

"The major triumph would be the day we successfully complete the Doha development agenda", said Mr. Panitchpakdi.

The last minute agreement main merit is that it puts the derailed Doha round talks and multilateralism back on track following last year's September deadlock in Mexico.

Nevertheless the multilateral accord for the first time includes a commitment to eliminate agriculture export subsidies and stricter rules on state aid for rural development.

But in a clear concession to United States and the European Union the agreement contemplates Washington decision to "reclassify" its multi-billion dollar agricultural subsidies not linked to production cutback programs, within certain limits and time table to be negotiated at a later stage.

The document also allows developed and developing countries a certain number of "sensitive" products meaning they may still be protected with above-average tariffs.

New is the agreement to negotiate an easing of customs procedures, which many developing countries in Africa and Asia had opposed.

US Trade Representative Robert Zoellick said the deal was a "crucial step for world trade", and French Agriculture Minister Herve Gaymard remarked the agreement "consolidated" the EU common agriculture policy. France has resisted with determination cutting subsidies to farmers.

The Chinese delegate said it was "not a bad deal", but added that developing countries are "not fully satisfied".

One of the architects of the accord, Brazilian Foreign Minister Celso Amorin, praised the role played by the G-20 group of nations, led by Brazil and India, whose representatives held closed-door meeting with U.S. and EU delegates in an effort to balance the document's final version in a way more beneficial for the developing world.

Japanese Foreign Affairs Minister Yokiro Kawaguchi described the agreement as having the elements needed "to bring about a balanced final agreement", but added that Japan would stand up for its farmers in future talks.

If and when rich and developing countries cut their tariffs, this could represent an additional 520 billion US dollars to the world economy by 2015, estimated a World Bank paper.