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Farm subsidy concessions at Doha trade talks

Discussion in 'BBS Hangout: Debate & Discussion' started by gwayneco, Oct 12, 2005.

  1. gwayneco

    gwayneco Contributing Member

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    http://news.ft.com/cms/s/c79ffe5a-3a7e-11da-b0d3-00000e2511c8.html

    US and EU pressed on Doha concessions

    By Alan Beattie in London, Raphael Minder in Brussels and Edward Alden in Washington
    Published: October 11 2005 19:05 | Last updated: October 12 2005 00:00

    Obstacles to radical reform of global farm trade became clear on Tuesday as both the US and European Union came under domestic pressure to limit concessions in the Doha round of talks.


    Saxby Chambliss, chairman of the Senate agriculture committee, warned the US administration not to agree to reduce overall farm spending as a result of a World Trade Organisation agreement.

    Mr Chambliss called the US proposal made on Monday by US trade representative Rob Portman a “bold and ambitious offer”, and agreed that some trade-distorting US subsidies could be reduced. But he also insisted on maintaining the controversial “counter-cyclical payments” that compensate farmers for low prices. The EU has demanded that those payments be changed.

    In a letter to Mike Johanns, US agriculture secretary, released on Tuesday, Mr Chambliss said: “I am deeply concerned the administration is using the current negotiations to reshape farm policy without the full input of Congress and grassroots support.”

    Mr Portman's proposal for deep cuts in subsidies and tariffs was followed by a less ambitious counter-bid by EU trade commissioner Peter Mandelson.

    But on Tuesday Christine Lagarde, French trade minister, said that Mr Mandelson had still gone too far. “The points on which I think Commissioner Mandelson went beyond the conditions and principles of his mandate, and his obligation on transparency with member states, concern in particular the positions he took on agriculture,” Ms Lagarde was quoted by Reuters as saying.

    Mr Portman acknowledged on Tuesday that the reaction in the US had been “mixed”, and said that US farmers would accept reduced support only if there were “a market access package that is very, very ambitious”. He said the US proposal was not an “opening gambit” and that the success of the coming Hong Kong ministerial meeting would depend on other countries responding favourably. “It's a political decision that they have to make,” he said in Geneva.

    Meanwhile, the poorest members of the WTO have attacked as inadequate plans for more aid to help them trade in world markets.

    In a letter to ministers meeting this week, Dipak Patel, the Zambian trade minister who co-ordinates the least developed countries (LDCs) in the Doha talks, said that an “aid for trade” proposal developed by World Bank staff was far too small to make a difference.

    Staff at the International Monetary Fund and World Bank have proposed spending $200m-$400m (£115m-£230m) over the next five years to help very poor countries build up the capacity to export through more transport infrastructure and better administration.

    But Mr Patel said: “This aid for trade package is totally insufficient as a carrot being offered to LDCs. This amounts to at most $2m per country per year for technical assistance, capacity building and assistance in project preparation.” The plan reflects concern that some developing countries particularly from Africa and the Caribbean will gain little from the Doha round.

    Cutting rich countries' farm subsidies and tariffs will help farmers in developing countries such as Brazil, which has competitive agricultural exports.

    On Tuesday Brazil and other members of the Group of 20 developing nations called for the US and EU to improve their offers on liberalising farm trade.

    But such moves could be irrelevant or even damaging to poorer countries whose farmers struggle to compete in global markets.

    The value of access for those farmers to rich country markets will be eroded by a general reduction in tariffs. Because of the veto held by all WTO members over agreements, opposition from such countries could scupper the talks.
     
  2. Sishir Chang

    Sishir Chang Member

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    I don't give this much of a chance of passing. I know the Congressional delegation from MN and our neighboring states ape sh*t everytime anyone talks of cutting farm subsidies and with 2006 congressional elections coming up next year and all of the Republicans current problems the Admin is going to be very cautious about alienating voters from farm states.
     
  3. Invisible Fan

    Invisible Fan Member

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    Both sides hate it, so I think its a great move for the US to make the first play to break this impasse. It's much better than the nothing the talks were headed a week before.
     

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