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Home  » Business » EU, US lock horns over agriculture

EU, US lock horns over agriculture

By Deepshikha Sikarwar in Hong Kong
December 14, 2005 13:18 IST
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The European Union and US on Wednesday locked horns over the latter's food aid programmes, with developing countries, including India, demanding an end to all farm export support as negotiations intensified to secure a deal at the Sixth WTO Ministerial meeting in Hong Kong.

Criticising the US food aid programme, EU Trade Commissioner Peter Mandelson said US food aid in kind was $2.6 billion in 2003, which is equal to EU's total export subsidies after it undertook sugar reforms.

The US, on the other hand, said it was willing to accept some protocols for the monitoring of its food aid programmes but wanted EU to move first by offering greater market access.

Developing countries want all kinds of farm export support to be eliminated and domestic subsidies reduced as per the July Framework, which also covers food aid.

Emphasising that for talks to move forward at the meeting, Mandelson said it was important for everyone to reduce posturing and get down to serious negotiations.

He also flagged the issue of LDCs (Least Developed Countries) and said it was important that this meeting is able to deliver the package providing for quota free and duty free market access to these countries for all their goods on a permanent basis.

US Deputy Trade Representative Karan Bhartia said the US has already indicated about doubling of aid-for-trade from $1.3 billion to $2.7 billion by 2010 and wanted EU not to insist on their demands for elimination of phase out or making local purchasing for it mandatory.
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Deepshikha Sikarwar in Hong Kong
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