BBC News | Sept. 13, 2003
Negotiations at the world trade talks in the Mexican city of Cancun have entered a critical phase with the sides deadlocked over the issue of farm subsidies.
A new draft of the final declaration is being handed to delegations in an effort to reconcile the United States and Europe on the one side and developing nations on the other.
Their G21 group, which includes Brazil, China and India, wants a sharp cut in aid for farmers in rich nations, which is hurting their economies.
The BBC's Mike Wooldridge says it is make or break day at the talks which are due to end on Sunday.
The EU and US say poorer countries must agree to broader legal and commercial reforms in return for any concessions on farming.
"If this is going to be a development agenda we need a lowering of barriers throughout the world," said Josette Sheeran Shiner, a senior member of the US delegation.
About 2,000 demonstrators armed with stones and shields and chanting "WTO murders" marched through Cancun on Saturday to denounce the talks - but were kept away from the conference centre.
Fundamental reform
There is a whole series of issues at stake besides removing distortions in global agricultural trade, including contentious ones dealing with foreign investment and competition policy, our correspondent says.
But the focus of this conference has been very much on the subsidies paid to European and American farmers and the impact this has on producers in the developing world and also on access to markets. On Saturday, some delegates were more upbeat about the chance of success.
"Our sense is that things are moving in the right direction in terms of an attitude favourable to negotiating," said US deputy trade representative Peter Allgeier.
And WTO spokesman Keith Rockwell said after Friday's sessions that that had been "movement, in some cases significant movement".
The EU says it is willing to abolish export subsidies only on some farm products that are of special interest to developing countries.
But the Indian Commerce Minister, Arun Jaitley, said the EU's position was not good enough, saying that "export subsidies on all products have to eventually go".
'Unhelpful comments'
Also blocking progress at Cancun are the so-called Singapore issues - investment, competition policies, trade facilitation measures and government procurement.
While Japan, Canada and the EU are pressing for WTO negotiations on such questions, developing countries say the time is not right. They are particularly opposed to the formulation of WTO policies governing cross-border investment, fearing such regulations would benefit multinational corporations at the expense of their own industries.
Meanwhile, a new alliance of 33 developing countries has appealed for special WTO measures to help small farmers whose interests have been harmed by trade liberalization.
"It is crucial that the Cancun meeting conclude with a commitment to safeguard small farmers in developing countries," said Indonesian Trade Minister Rini Sumarno Soewandi.BBC News:
