MercoPress. South Atlantic News Agency

UK call for scrapping agriculture subsidies

The Finance ministers from the G7 group (most industrialized nations) meeting in London called for a renewed attempt to break the deadlock in world trade talks, ahead of the WTO Hong Kong December 13/18 meeting.

The talks are considered critical in reaching a global agreement which so far has been elusive with developing nations demanding action on farming subsidies. Host United Kingdom Chancellor Gordon Brown called for the subsidies to be scrapped but faces strong opposition inside the European Union, particularly from France.

In a statement after their meeting, the ministers called for international co-operation to lessen the economic impact of volatile oil prices and urged China to further relax state controls on its exchange rate following the small revaluation of the Yuan last July.

With less than two weeks to the Hong Kong meeting the two-day summit began with talks between G7 ministers and their counterparts from Brazil, China, India and Russia.

Mr. Brown said richer countries particularly elsewhere in the European Union should give up farming support in favour of a fair system of free trade. "This is a 300 billion US dollars issue", added the UK official referring to EU agriculture support funds.

The Hong Kong talks from 13 to 18 December will mark the end of the World Trade Organization's Doha development round, aimed at eliminating unfair trade barriers and giving the world's poorest countries easier access to global markets.

Mr. Brown has insistently argued for long-term change to create a "sustainable future" for agriculture worldwide, including reform of the EU Common Agricultural Policy. But attempts to reform the CAP have run into opposition, particularly in France, despite criticism of the policy from the US and developing countries. However US has also been accused of protectionist policies with regard to its own farmers and markets.

The G7 gathers finance ministers and central bank governors from the UK - which holds the presidency in 2005 - plus the United States, France, Canada, Italy, Japan and Germany.