Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 551 Wed. December 14, 2005  
   
Front Page


Rich, poor nations at odds over farm trade


Rich and poor nations were at odds as a World Trade Organisation meeting opened here yesterday, with trade ministers saying a breakthrough is unlikely on the thorny issue of agricultural trade that has held up negotiations for months.

At least 1,000 protesters - mostly South Korean farmers wearing red bandanas - gathered at a downtown park to chant slogans against the WTO, driven by fears that opening up their agricultural markets would destroy their livelihoods.

Police have blocked off access to roads near the conference site, set up barricades and even glued bricks onto the sidewalks in the hopes of preventing violence that has flared at previous WTO summits.

The six-day meeting was meant to lay the groundwork for a global treaty by the end of 2006 that would cut trade barriers across a wide array of sectors, from agriculture to services, wrapping up the so-called Doha round of talks.

But an impasse over farm trade has brought the negotiations to a virtual halt, with developing nations accusing the US, EU and other rich economies of not cutting agricultural tariffs and farmsubsidies enough, keeping out exports from poorer nations that depend heavily on agriculture as an income source.

India's trade minister, who has emerged as a key figure in the talks, said that while it would be hard for 149 WTO members to reach an agreement on farm trade, he didn't foresee an outright collapse like the previous ministerial gathering in Cancun, Mexico, two years ago, which fell apart amid acrimony. Differences over agriculture was the culprit there, too.

"I don't see a repeat of Cancun," Indian Commerce Minister Kamal Nath told the Associated Press. "Cancun was an outburst of a lack of hope. Now countries are hoping."

Still, Nath insisted that "developing countries do not want to see the perpetuation of inequities in global trade."

EU Trade Commissioner Peter Mandelson has said that the European Union won't change its offer of an average 46 percent cut in farm tariffs unless he sees some movement from developing nations on offering to reduce their trade barriers on manufactured goods and services.

Mandelson said that parties gathered in Hong Kong summit should try to narrow their differences so that a treaty can be completed by year's end, saying that developing nations depend on a successful round.

"Whilst we cannot solve the problems of the round in Hong Kong, Hong Kong must help us to find solutions of balance and of ambition in the endgame of the round," he said.

"This meeting has already been downgraded as a midterm stocktaking," said Mari Pangestu, Indonesia's trade minister, who heads a grouping of 45 poorer countries within the WTO. "We hope by April to reach an agreement on full modalities."

Outside the convention centre, various protest groups staged demonstrations to vent their anger and concerns about the WTO and globalisation, which many of them believe benefit primarily the rich and powerful.