Divisions wide at WTO farm talks

GENEVA - Farm goods talks have begun at the World Trade Organisation but divisions between exporters and importers remain deep as the clock ticks towards a December deadline for a deal.

Officials said the United States, which is pressing the European Union (EU) and other importers to open up their markets, spelled out to the 148-state membership proposals already floated in talks with a small group in Paris last month.

The EU detailed its ideas on subsidies for producers, but the US gave no indication of what it is prepared to do in an area in which it is under pressure to make concessions.

The chairman of the farm talks, New Zealand ambassador Crawford Falconer, said he was heartened by the way states were talking numbers, but much needed to be done to secure an accord in Hong Kong.

The farm negotiations are a crucial part of the WTO's Doha Round, with member states aiming for a broad draft deal at a ministerial conference set for Hong Kong in December.

"We need progress this week," said Falconer, referring to the discussions due to run until tomorrow.

The US has proposed that tariff lines should be divided into four bands for the purpose of setting cuts. The bands would run from 0-20 per cent, 20-40, 40-60 and above 60 per cent.

The corresponding tariff cuts inside the bands would be 55-65 per cent, 65-75, 75-85 and 85-90 for rich nations, with those for poorer countries to be fixed later.
There would be a cap on all tariffs of 75 per cent for rich states, with 100 per cent for the poor.

EU trade ambassador Carlo Trojan said: "It is unacceptable." But several developing countries, including India and China, also raised objections, saying it placed too heavy a burden on poor nations.

On domestic subsidies, the EU said it was willing to see a three-band system, with the biggest subsidisers in the top band.

In the highest band, which it said would include itself and Japan, the cut would be 65 per cent, with 55 per cent being made by the second tier, to include the US, and 45 per cent for the third.

- REUTERS