MercoPress. South Atlantic News Agency

EU farming subsidies under fire at WTO

It was the European Union vs. the Rest of the World as global trade talks remained deadlocked yesterday, with the EU defending itself from a barrage of criticism that its refusal to further opens its farming markets threatened to torpedo the entire World Trade Organization meeting.

Poor nations say that as a part of a global free-trade deal, the EU, US and other rich nations must cut their farm subsidies and tariffs that block developing countries' access to those lucrative markets.

Chile's foreign minister, Ignacio Walker, blasted the EU's farm subsidy programme, which critics say totals up to US$110 billion a year. Walker said that works out to about US$2 a day for each cow. ??So many poor people wish they would be at least as well off as an EU cow,'' Walker said.

But EU nations say they have already offered generous reductions in agricultural programmes, including an average cut of 46 percent on farm tariffs. The Europeans also say that developing countries ? particularly Brazil, India and China ? need to counter with offers to lower their trade barriers to services and manufactured goods. The EU says its farm support programme pays out 43.7 billion euros.

??The EU has presented a complete agricultural package,'' said Elena Espinosa, Spain's agricultural minister. ??What did the others present? Nothing, nothing, nothing.''

Delegates suggested yesterday that there was some incremental progress during the third day of six-day talks, but didn't offer specifics.

??The dynamics are changing,'' said an Indian trade official who asked not to be named due to the sensitive nature of the talks.

Keith Rockwell, the chief WTO spokesman, added, ??We had a very good meeting in the morning. There is a desire to move forward.''

The trade talks, mired in a stalemate over the farm trade issue even before it began, encountered further problems yesterday when Honduras said it might reject an overall agreement produced at the WTO gathering unless the 25-nation EU agrees to reform its banana import policies.

??We hope to try and find an agreeable solution before Sunday,'' Honduras' WTO Ambassador Dacio Castillo told The Associated Press. ??Otherwise it's going to be difficult to accept whatever will be the outcome of this meeting.''

In other development, US trade chief Rob Portman said that Washington is willing to provide duty and quota-free access for cotton produced in West Africa, but was immediately criticized by the EU and campaign groups for offering the wrong solution to African producers' needs.

Portman said the US was working with Burkina Faso, Benin, Chad and Mali ??to address their concerns, and we're hopeful to have some sort of resolution this week.'' But the EU said that although the US proposal is a step in the right direction, much more work still needs to be done.

??The real problem for African cotton producers is dumping on the world market, resulting from domestic and export subsidies,'' said an EU statement.

The WTO approved Tonga's bid to become the 150th member of the global body. The South Pacific nation will officially become a member early next year.

Meanwhile, hundreds of South Korean protesters who have been scuffling with police outside the convention center the last two days switched to peaceful Buddhist tactics: repeatedly kneeling and kowtowing as they marched to the meeting venue.

They say that opening their domestic rice market under a WTO treaty to foreign competition would bankrupt them.

??This is to express our firm wish in the most desperate and humble way,'' said protester Park Min-yung, secretary-general of the Korean Peasants League.

Another group of protesters also disturbed a news conference by EU trade Chief Peter Mandelson inside the conference center, singing to the Jingle Bells tune, ??Mandelson, Mandelson, this gift we give to you.

Trade for aid is the game you play, it's empty through and through.'' Mandelson commented, ??Christmas is obviously coming early in Hong Kong. (BAH)