
The European Union has offered to cut its farm tariffs by 60% to kick-start trade talks in Geneva. EU trade commissioner Peter Mandelson urged Brazil, India and China to reciprocate by slashing their industrial tariffs. The EU previously offered to cut farm tariffs by 54%.

Cuban President Raul Castro announced the redistribution of government land that is not in use to private farmers to stimulate food production and efficient farming. Cuba in spite of abundant farm land must import half of its food.

Chile's ruling coalition Concertación, but challenged by protests and a slowing economy should be prepared to lose the 2009 elections after 18 years in power, the interior minister said in an interview published in the Santiago media.
The tense hours following the stunning defeat of the grain and oilseed export tax in the Argentine Senate have been by far the most demanding moments ever undergone by President Cristina Fernandez de Kirchner since even her resignation was considered, according to reports in the Buenos Aires press.
Argentine farm organizations called Thursday on President Cristina Fernandez de Kirchner to revoke the controversial sliding grain and oilseeds export tax, resolution 125, as the government had promised if the bill was repealed by Congress.
Speaking for the first time since the stunning defeat suffered in Congress Argentine president Cristina Fernandez de Kirchner said that she will continue to fight for those who have less and promised to insist with policies that affect interests.

Headlines: Survey slams tax system; Kids enhance sea front spot; Loligo industry puzzled by protest response; Govt meets with BAS; Kirchner defeated in Senate.
Under the heading of Losing friends fast The Economist refers to the milestone last 48 hours in Argentina and concludes that if President Cristina Fernandez de Kirchner does not learn fast from her mistakes, she may go down as one of the longest-serving lame ducks in recent democratic history.

After a dramatic 18hrs session senators tied 36 to 36 in two votes on the measure. Julio Cobos, the vice-president voted against the proposal, breaking the tie. The bill was approved by the lower house of Congress on July 5.
A defense agreement to share military information, technology, training, intelligence, weapons procurement and joint exercises will be signed this weekend between Brazil and Colombia when President Lula da Silva arrives for two-day talks with his counterpart Alvaro Uribe.