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Home  » Business » Farm sops to end by 2013

Farm sops to end by 2013

By Monica Gupta in Hong Kong
December 19, 2005 10:27 IST
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A united front put up by the developing countries helped them wrest significant gains at the World Trade Organisation as members settled for a ministerial declaration that would seek to address agriculture and industrial tariff concerns.

They include proposals to set April 30, 2006 as a deadline for reaching a draft pact for the wider Doha trade round and to phase out export subsidies by 2013.

The draft plan to end agriculture export subsidies came after the EU and farm goods' exporters struck a compromise.

However, calling the draft not a "true success", EU Trade Commissioner Peter Mandelson told a news conference: "The text is acceptable. . . it is enough to save (the Hong Kong meeting) from failure."

WTO Director-General Pascal Lamy complimented member countries for putting the negotiations back on track and re-balancing the round in favour of the poor and developing countries. "We are tilting the balance in the WTO firmly and steadily in favour of the developing countries," he said.

The text, proposed after six days and almost as many nights of wrangling between rich and poor nations, must be approved by the full 149-nation WTO membership at the ministerial conference.

The ministerial meeting was marked by daily protests from anti-globalisation farmers and intense differences between the US and the EU on issues such as an end-date for elimination of export subsidies, a development package for the least developed countries and food aid.

Brazil's Foreign Affairs Minister Celso Amorim told reporters that he was authorised by the G-20 developing country alliance, which only deals with agriculture, to accept what was on the table despite having demanded a 2010 end-date. "I think it is a fair compromise," he said.

"The unity of the developing countries helped ensure that the development concerns were reflected in the text. The unity that we have been able to foster in the green room is reflected in the gains in the text," Amorim said.

While decisions on several contentious issues including a formula for reduction of trade distorting subsidies in agriculture and reduction of industrial tariffs has been put off till 2006, countries succeeded in putting together a package for poor nations in general and cotton in particular.

Developed countries have agreed to eliminate all forms of export subsidies for cotton by 2006 and extend duty- and quota-free access from the commencement of the implementation period.

Similarly, developed countries and developing countries, in a position to do so, have also agreed to provide duty- and quota-free market access on a lasting basis for all products from LDCs by 2008 or no later than the start of the implementation period.

There was also progress in services, with countries agreeing that groups of countries presenting plurilateral requests should do so by February 2006 and a second round of offers to be submitted by July 31, 2006. Members also agreed that the final draft schedules of commitments should be submitted by October 31, 2006.

Both the developed and developing countries termed the deal as satisfactory. Commerce and Industry Minister Kamal Nath said the deal indicated that the contours were right and inequities of the global trading system were being addressed while Amorim said, "It is not 100 per cent of what we wanted, but a modest development."

US Deputy Trade Representative Susan Schwab said the ministerial had witnessed unprecedented cooperation between the developed and developing countries.

"We have laid the platform for what we hope will be a highly successful trade negotiations round in market access in agriculture, in services and in industrial goods," she said.

Poorer countries, such as Cuba and Venezuela expressed their reservation on issues like NAMA and services but allow the text to go through.

"There is a general feeling of frustration and dissatisfaction, not to mention discontent," said Mauritian Trade Minister Madan Murlidhar Dulloo, speaking on behalf of the African, Caribbean and Pacific (ACP) group of countries.

No fresh date and venue for the seventh ministerial has been decided so far.
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Monica Gupta in Hong Kong
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