Farm trade plan falls into chasm

By BRIAN FALLOW

The failure of trade ministers meeting in Tokyo at the weekend to find common ground on agriculture is all part of the push and shove of such negotiations, says Trade Liberalisation Network executive director Suse Reynolds.

A first draft proposal by Stuart Harbinson, who chairs the agriculture talks within the World Trade Organisation's Doha Round process, failed to provide even a rickety rope bridge over the chasm separating the protectionists, led by the European Union and Japan, and the agricultural exporters. Harbinson has been sent back to the drawing board.

The United States and the Cairns Group of agricultural exporters want more ambitious liberalisation than Harbinson put forward, while the Europeans condemned it as "unbalanced" and "politically flawed".

New Zealand Trade Minister Jim Sutton said balance and political acceptability would be found within the totality of the Doha Round, not within any single sector.

"Without a good agricultural outcome there will be no Doha Development Round and millions in developing countries will be denied the opportunity to trade their way out of poverty," he said.

Reynolds said it was not the purpose of the Tokyo meeting to reach agreement on agricultural trade.

"What we have seen is countries staking out their preliminary positions. The hard graft now begins in Geneva."

Sutton said New Zealand would push for faster elimination of export subsidies, more market access and deeper cuts in trade-distorting domestic support.