By Daisy Ayliffe - 30th November 2005
Western farm subsidies could face an onslaught of WTO litigation if they are not reformed in the Doha world trade round, claims an Oxfam report.
The campaigners argue that successful WTO cases brought by Brazil against US cotton subsidies and the EU sugar regime have created precedents.
“Unless the EU and the US live up to their promises at the WTO, they will leave developing countries no option but the dock,” an Oxfam spokesman said on Wednesday.
The study concludes that €11 billion of subsidies could be legally challenged at the WTO.
This could involve challenges to EU support for wine, fruit, vegetables, butter and tobacco.
Oxfam said it was unclear whether developing countries would choose to bring such cases – partly because of cost.
Ministers from WTO countries meet in Hong Kong in a fortnight’s time but few expect to secure breakthroughs until 2006.
“Wine, fruit and vegetables are the great leftovers from the 2003 agricultural policy reform and they will be reformed next year,” a spokesman for EU trade commissioner, European Trade Commissioner Peter Mandelson, told journalists.
Mike Johanns, US secretary of state for agriculture, told American farm leaders last month that a bold reform package would reduce the chance of litigation.
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