By NAOMI KOPPEL / Associated Press Writer
GENEVA (AP) -- Attempts to admit China as a member of the World Trade Organization snagged Friday on Beijing's insistence that it should be able to give extra help to its farmers.
China is refusing to relax its demands to be treated as a developing country in terms of its agricultural industry, thus allowing it to pay higher subsidies to farmers.
Countries which do not protect their farmers, including Australia, Canada and Brazil, oppose this and say China is a developed nation.
Under WTO rules, countries classified as "developed" have the right to subsidize up to 5 percent of their agricultural output. For "developing" countries, the figure is 10 percent.
"China is still a big agricultural country -- 900 million farmers still work in the fields," China's chief negotiator, Long Yongtu, told reporters.
Although China's subsidies are currently only 2 percent, Beijing insists it must have the right to protect its farmers if necessary.
"For the poor farmers, we have to reserve this right. Why should (opponents) deprive China of doing that? It's absolute nonsense. They should know the limit," Long said.
China has already committed itself to removing all subsidies directly linked to exports when it joins the WTO, the body which sets rules on international trade. Those subsidies are considered to have the biggest effect on international markets.
Trade officials said Long made his demands at the end of Friday's session of the working party looking at Chinese membership, and there was no immediate reaction from WTO members.
Although China is insisting on developing country status for agriculture, it is expected to agree to be treated as a developed nation in other areas, such as trade in manufactured goods.
Diplomats said progress had been slower than expected during the first three days of the working party's meeting, although Long said they were close to agreement on two of the outstanding issues, relating to trade in textiles and how to establish if goods are being sold at below market prices.
Other issues still under discussion include access for service industries and rights for foreign companies to trade in China.
WTO members are also concerned that China has two standards agencies, one for domestic products and one for imports. They insist that the rules must be the same for everybody. Beijing says it is prepared to comply, but says it needs time.
China has been trying to join the WTO for more than 14 years, but its hopes of joining by the end of 2000 were not fulfilled.:
