MercoPress. South Atlantic News Agency

US prepared to cut farm subsidies but wants reciprocity

United States is prepared to reduce agricultural subsidies but wants to ensure market access for goods and services, President George W. Bush said on Saturday in Uruguay, the second leg of his five countries tour of Latin America.

At a news conference in Uruguay's presidential camp residence the Anchorena Park, Bush said he had spoken with President Tabare Vazquez about advancing the Doha round of trade global trade talks and that he was optimistic a deal could be reached. "The United States is fully prepared to reduce agricultural subsidies; we just want to make sure there is market access for our products". Bush said that one of the main issues discussed with President Vazquez was "finding common ground" to benefit both Uruguay and the US, adding that both leaders also addressed bilateral commercial issues and their commitment to keep advancing in the trade and investment framework accord. In November 2005 Uruguay and the US signed a bilateral investments' agreement and last month launched the Trade and Investment Framework Agreement, TIFA, considered the first step towards a full free trade agreement, in spite of resistance inside the ruling coalition and lack of support from Mercosur members Argentina and Brazil for such a proposal. The signing of trade agreements with third parties must have the consensus from all Mercosur members, a significant stumbling block for Uruguay's intention of diversifying markets and which adds to the growing disenchantment of Montevideo with the regional trade block that has become a "two members club" (Argentina and Brazil).