Wall Street Journal | Dow Jones Newswires | November 12, 2001
DOHA, Qatar (AP)--The U.S. is willing to put the payments it makes to U.S. farmers "on the table" at any new global trade talks, leaving the European Union isolated in its insistence on keeping farm subsidies, U.S. Agriculture Secretary Ann Veneman said Monday.
U.S. farm export credits are "certainly not ruled out in the negotiations," Veneman told reporters at the World Trade Organization talks in Doha. "I think it's fair to say they're on the table."
After four days of talks in Doha, Veneman said the hard bargaining on agriculture was expected to occur Tuesday - the session's final day - when ministers hope to produce agreement on an agenda for new global trade talks.
Differences over agriculture - and specifically demands that the 15-nation E.U. eliminate export subsidies - helped sink the last attempt in Seattle.
The E.U.'s negotiating position remains unchanged, but Veneman said it was "pretty isolated" in its refusal to accept that any new talks aim at "phasing out" agriculture subsidies.
More than 80% of export subsidies for farm products worldwide are paid by E.U. countries. The E.U.'s total farm support runs about $38 billion annually.
The U.S. spent $27 billion in 2000 on domestic farm support. But rather than export subsidies, it relies more on subsidized loans. The E.U. charges those amount to subsidies as well, but wouldn't be restricted.
"We support disciplines for all trade distorting forms of export promotion," E.U. Agriculture Commissioner Franz Fischler said Friday. "But we want to see a level playing field."
The Bush administration is pressuring Congress to restrict domestic subsidies as it works on a long-term extension of federal farm assistance.
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