Associated Press | By Naomi Koppel | Sept. 12, 2003
Poor nations are standing firm on their demands for big cuts in agricultural subsidies despite criticism that they are offering little in return.
The so-called Group of 21 developing countries, led by Brazil, India and China, held long meetings with rich nations on the second day of the World Trade Organization ministerial meeting Thursday, and stuck to their position that subsidies for farm products destined for export should be eliminated and others cut dramatically.
"The legitimate concerns of billions of farmers in developing countries, for whom agriculture means survival and not commercial operation, cannot be sacrificed," Indian Commerce Minister Arun Jaitley said.
But the United States and the European Union - the world's biggest subsidizers - showed little willingess to play along.
"It can't be a one-way street whereby the United States agrees to eliminate subsidies but the rest of the world does nothing," said Sen. Chuck Grassley, R.-Iowa, chairman of the Senate Finance Committee.
He said he was disappointed that the group of holdouts included some countries - including Colombia, Thailand, Egypt and South Africa - that are negotiating trade deals with Washington.
"This makes me question their commitment to free trade and their interest in pursuing the strong market access commitments required to conclude free trade agreements with the United States," Grassley added.
The issue could prove to be a big stumbling block in the meeting of ministers from all 146 WTO members. They are trying to make progress in the current round of trade liberalization negotiations, with the aim of reaching a binding treaty by the end of next year.
The European Union has refused to stop paying benefits to agricultural exporters despite agreeing in 2001 at the start of the talks to "reductions of, with a view to phasing out, all forms of export subsidies."
"'A view to phasing out' doesn't mean phasing out, doesn't mean eliminating," EU spokesman Gregor Kreuzhuber said. "The European Union position has been very clear."
He added that the EU has already made significant concessions by agreeing to eliminate export subsidies on products that are of importance to developing countries - though it has yet to say which products those will be.
"There is no backtracking. There is just a move in the direction of the demands of other countries," Kreuzhuber added.
Negotiators in Cancun are trying to create a binding treaty that would reduce subsidies and tariffs on foreign goods and services by the end of next year. Although the treaty covers a wide range of subjects, agriculture is seen by most as the crucial issue.
Meanwhile, developing nations from 16 countries said Thursday they do not want to launch negotiations on four new issues, including foreign investment.
"We are simply not ready for it," said Dipak Patel, commerce and trade minister for Zambia.
A day after violent demonstrations in Cancun city's center, most protests Thursday were peaceful. However, at one point campaigners dumped a bag of corn in front of U.S. officials at a news conference to protest genetically altered crops, leading the WTO to ban nongovernmental organizations from press briefings.
In southern Chiapas state, activists seized a small radio station and broadcast messages against the WTO.
Late Thursday, the WTO ministers approved the membership of Cambodia and Nepal.Associated Press:
