WTO farm talks report scant progress
Reuters, Geneva
The World Trade Organisation (WTO), battling to meet a looming deadline for trade accords, reported scant progress Friday at the end of intensive talks on agriculture. Farm goods trade has long been the most controversial area of trade diplomacy and negotiators met for three days of talks at the Geneva-based WTO in a bid to narrow differences.But diplomats said divisions remained in key areas of the negotiations, with the clock ticking towards an end-July target for preliminary accords on lowering barriers to trade in both farm and industrial goods and on speeding progress in talks on liberalising services. "There are many problems and not a lot of time to resolve them," said one Latin American diplomat. Five trade powers -- the United States, the European Union, Brazil, India and Australia -- have been taking the lead in the search for solutions because between them as they represent most of the interests at stake in the farm talks. Australia is a leading member of the Cairns Group of farm goods exporters, while India and Brazil represent the G20 developing country alliance. Diplomats said that representatives of the five would continue contacts and that their trade ministers might hold another meeting in early July. US Trade Representative Robert Zoellick and EU trade Chief Pascal Lamy met with the other three ministers on the fringes of a United Nations' conference in Brazil earlier this month. Their next meeting could be in Mauritius in the second week of July where ministers from a group of developing countries are already planning to meet, diplomats said. "At least everything is out on the table and the positions are quite clear. The problem is to make progress on the technical issues so the ministers can make some political decisions," said a diplomat from one of the five. Diplomats identified three main areas of continuing disagreement: how to cut import tariffs, export credits and issues linked to state trading companies, and domestic subsidies. The European Union has said it is ready to scrap its direct export subsidies, long the most controversial form of support to farmers, but it is demanding in return that the United States virtually dismantle its system of export credits. It also wants countries with state concerns that operate as monopolies for some farm exports, such as in Canada and Australia, to get rid of them as well.
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