UK calls for end of EU farm subsidies

The UK has stepped up pressure on France and other EU countries to further cut farm subsidies to secure a new WTO world trade deal.

UK finance minister Gordon Brown used a meeting of finance ministers from the G7 group of wealthy nations to demand more reform of EU farm subsidies.

“We want reform of agriculture policy: more progress has to be made in agriculture both by Europe and America,” he said.

The stance has angered officials in Paris who insist agriculture “is not the only dossier” that needs to be addressed in ongoing spats over a WTO deal.

French Finance Minister, Thierry Breton insists services, industry, and intellectual property are also key components of the WTO talks.

The G7 meeting was dominated by achieving “an ambitious outcome” to the WTO Doha Development Agenda negotiations by the end of 2006.

But ambitions for the development-centred trade round continue to be scaled down with all parties refusing to blink first. 

Brazil-India proposal

Brazil and India have expressed a commitment to reducing customs tariffs in industry and services – but only if the EU and the US make a move on agriculture.

“We have offered a 50 per cent cut in tariffs. This has not been matched,” Indian trade officials said in a statement after the G7 meeting.

“India is willing to undertake higher cuts provided developed countries can match or take higher cuts. As far as services are concerned, we have made a number of offers and depending upon the response, are prepared to move forward.”

But giving further ground on agriculture has been opposed by France and European Trade Commissioner Peter Mandelson agrees that the EU has given all it can.

“I have no plans to make a further agricultural offer,” Mandelson said last week.

Brown said that Brazilian and Indian offers should be matched by Europe.

“The Brazilian and Indian offers only open up one path,” Brown told G7 finance ministers.

“I think the US is ready to respond. It is now down to the French to open dialogue with European negotiators.”

Washington welcomed the noises emanating from London, agreeing that Europe holds the key to progress.

“This expression of support could give fresh momentum to talks, helping us shake off the lack of movement and get to where we should be,” US Treasury Secretary John Snow told reporters.

London wranglings

Speaking to journalists over the weekend, the EU trade chief criticized UK finance minister Gordon Brown over his comments that France is standing in the way of a WTO deal.

Mandelson said Brown was “missing the point” in pressing for cuts to the CAP in order to clinch a deal that would open up international markets to poorer countries.

“I think he's going somewhat over the top in asking for that,” Mandelson argued.

Farmer's wrath

African and European farmers added to the disaccord on Monday, dismissing WTO proposals as detrimental to sustainable family farming and development.

In a joint press release, European and African farmers say they have everything to lose from the WTO deal.

“Such an agreement would seriously harm African family farming by creating competition between African farm produce and cheap farm imports from the EU because of inadequate or nonexistent tariff barriers.

“Fair trade is only possible between comparable economies with comparable levels of competitiveness,” the statement stresses.

The farmers have called for an overhaul of the current agricultural policies and have urged ministers to prioritise regional integration instead of international trade.

Farmers also propose a ban on the use of domestic subsidies to export at prices below the production costs, and the right to protect domestic markets against cheap imports.

The Doha negotiations were launched in 2001 and have been stalled almost from the start over difficult agricultural trade issues.

They were originally scheduled to conclude in 2005 but since then participants have pressed for conclusion by December 2006.

Trade ministers will meet December 13-18 in Hong Kong meeting to set the details and deadlines necessary for concluding the negotiations a year later.

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