Independent (London) | Philip Thornton in Cancun | Sept. 11, 2003
The British Government was embarrassed at the high-profile world trade talks by the disclosure that the European Commission was backtracking on plans to cut its massive farm subsidies.
Brussels is apparently seeking to water down promises it made last month in a joint proposal with the United States in an attempt to break a stalemate at the World Trade Organisation.
All 142 members of the WTO signed up to an agreement at its meeting in Doha, Qatar, two years ago to phase out farm subsidies as part of a package of measures aimed at benefiting the poorest countries.
According to a draft document, seen by The Independent, references to "phasing out" farm supports have been removed. It also put extra emphasis on the need to open talks on a global set of rules governing foreign investment - something many developing countries bitterly oppose.
The European Commission is not thought to have discussed the changes with Britain at the talks in the Mexican beach resort of Cancun. The British delegation was taken by surprise when the plans leaked out on Tuesday night. Yesterday, minister tried to distance themselves from the proposals.
Margaret Beckett, the Environment Secretary, said: "The status of the document is wholly unclear."
Non-government organisations in Cancun seized on the document. John Hilary, a policy analyst at ActionAid, said: "This takes us back four years, even before Doha. Everything that we won there we are having to fight for again."
But Ms Beckett said: "No doubt people are exploring ideas, but if you look at the text on subsidies and phasing them out, that remains, as far as I understand it."
There were further problems for the EU negotiators yesterday. More than 20 countries, which include more than half the world's people and almost two thirds of all farmers, formed an alliance to push for steeper cuts in farming subsidies and tariffs.
The G20, which includes farming countries such as Brazil and Argentina and poorer states such as Libya and Egypt, said it wanted a "substantial contribution" from developed countries. "Export subsidies must be eliminated," it said yesterday.
Supachai Panitchpakdi, the WTO's director general, opened the conference by saying the world awaited a strong message in favour of freer trade. "The outlook for the world economy remains uncertain and, despite some encouraging recent signs, we are not yet on the road to sustainable recovery," he said.
Kofi Annan, the secretary general of the United Nations, told the delegates: "Here in Cancun I urge you to say no to policies that aggravate poverty, and no to policies that undermine aid."
The central issue - and the biggest stumbling block in the talks - is the need to draw up plans to cut the immense subsidies the world's richest nations hand their farmers.Independent (London):
