Sunday, June 22, 2008

Developing countries gloomy on WTO farm talks

Brazil and other developing countries have complained that agriculture proposals at the World Trade Organisation do not open up markets enough, dimming prospects of a deal being reached this year. "The options on the table do not seem to fulfil the mandate for substantial improvements in market access."

The G20 group of developing countries said in a statement issued late Friday, referring to proposals on the farm sector. The G20 blamed developed countries, saying: "we have no indication of what those countries are prepared to do" in terms of cutting subsidies.

The WTO's 152 member states remain mired in an impasse over the Doha round, which was failed to make significant headway since it was first launched in the Qatari capital in 2001. Talks are stuck because of disagreements between rich and poor countries over the removal of subsidies and trade barriers for agricultural and industrial products.

WTO Director General Pascal Lamy has repeatedly said a deal is "doable" before the end of the year, but chances of any breakthrough look to be dwindling, with French President Nicolas Sarkozy being particularly unoptimistic. "It would be highly unrealistic to keep wanting to negotiate a deal where we haven't received anything on services, nothing on industry ... and which would cut farm output by 20 percent while 800 million people are dying of hunger," Sarkozy said Friday.


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