WTO deal deadline looms

GENEVA - Long-standing proposals on farm tariff cuts by the G20 group of developing countries probably offer the best chances for a World Trade Organisation deal, says the chairman of the farm negotiations.

New Zealand ambassador Crawford Falconer said: "I cannot see how any objective observer could avoid the conclusion that the real zone of engagement has to be around the G20."

Those pushing for the deepest tariff cuts, such as the United States and Australia, reject the G20 plan as not enough, while the more defensive agricultural powers such as the European Union and Japan say it goes too far.

WTO member states face an end-June deadline for a draft agreement in agriculture and industrial goods, including cuts to subsidies and tariffs.

The draft deals, which the WTO hopes will be hammered out at a meeting of trade ministers between June 29 and July 2, aim to set the stage for a blueprint for a complete free trade pact to be agreed at the end of July.

Failure to meet the deadlines could condemn to failure the WTO's Doha round, with its promise to boost economic growth and help lift millions out of poverty.

The Brazil- and India-led alliance has called for developed states to agree to cut their farm import tariffs by an average 54 per cent, while developing countries would accept an average maximum cut of some 36 per cent.

But the US wants 66 per cent for the richer nations, the European Union is offering 39 per cent and other big farm goods importers such as Switzerland and Norway even less.

Falconer said deep differences between states over agricultural trade would be difficult to bridge. The first public reaction to his views will come today, when the WTO's 149 members hold another round of farm talks.

- REUTERS