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Copley News Service | By Diane Lindquist and S. Lynne Walker | September 14, 2003

U.S. congressmen on Saturday blasted the first draft of a World Trade Organization agreement they had hoped would spur more sales of American food products abroad

"There is a long way to go to satisfy U.S. farmers," said Rep. Bob Goodlatte, R-Va., chairman of the House Agriculture Committee.

Few among the WTO's 148 member nations seemed pleased with the 24-page draft released Saturday afternoon. The document kicked off the most intense phase of the negotiations, which are scheduled to end today with a framework agreement to liberalize trade and close the gap between rich and poor nations. The long-range goal is to have a binding agreement by the January 2005 deadline for the WTO's Doha Round of negotiations.

Countries faulted the text both for going too far and not going far enough to cut tariffs and domestic subsides. China, India and Venezuela were reportedly among those who felt their views were not addressed. Several African countries were disappointed in the weakness of a special provision covering the production of cotton from farm to fabric to clothing.

Criticism also came quickly from many non-governmental organizations, who for the first time were allowed into the WTO meeting, although they were restricted to certain areas. Several claimed the draft agreement didn't do enough to close the gap between rich and poor nations and that it would create conditions that would harm the environment.

Members of the House Agriculture Committee said the document wasn't nearly ambitious enough in harmonizing global farm tariffs or in slashing domestic supports for farmers.

The text was studded with blanks to be filled in later with percentage figures of tariff and subsidy reductions.

Goodlatte blamed the European Union for the missing numbers. They're "holding back," he said.

U.S. agricultural tariffs average 12 percent, while those in the rest of the world amount to 62 percent. Europe pays three times as much in supports to its farmers as does the United States.

As the draft was circulating in the bustling convention center, about 3,000 protesters took to Cancun's streets.

Armed with rocks, sticks and even metal drums, the protesters marched to an 8-foot barricade erected by police more than five miles from the convention center. Shouting, "Down, down, WTO," they tied ropes to the heavy metal fencing and tugged at it for nearly two hours, until it crashed to the ground.

Federal police armed with riot shields and batons stood guard on the other side of the barricade, uncertain about what would come next. Five days earlier, demonstrators had thrown pieces of concrete, flaming rags and even shopping carts at police before breaking down the barricade.

But Saturday's protesters - led by a group of South Koreans mourning Wednesday's suicide of fellow demonstrator Kyung-Hae Lee - simply sat down and listened to speeches after they destroyed the barricade. It was a symbolic act, organizers said, to express their frustration about being barred from negotiations affecting their livelihoods.

Raising their voices so they could be heard above cheers from the crowd, organizers said growing opposition to the WTO's proposal to slash subsidies and tariffs suggested the negotiations could fail to produce and agreement.

But some U.S. officials were still hopeful that the trade ministers could reach an agreement by Sunday's closing sessions.

"There are positive elements and there are other elements we will work to improve and clarify," said U.S. Trade Representative Robert B. Zoellick in a prepared statement. "We will continue to push for high ambition, balanced by appropriate flexibility."

California fruit, nut and vegetable growers fared better than U.S. wheat, corn, rice and sugar producers, because the California farmers receive little or no support payments. If the framework agreement goes into effect, they will be able to sell their horticultural products in foreign markets at a lower price, no matter how much the tariffs are cut.

"For California, it's pretty positive," said Rep. Calvin M. Dooley, a Democrat from the Central Valley.

The House Agriculture Committee members also took issue with some of the proposals designed to speed economic growth in developing countries, particularly the poorest and the newest members of the WTO. Membership was approved here for Nepal and Cambodia, and 25 more nations are negotiating to join the organization.

New members, the document said, won't have to reduce tariffs on foreign products as much as other countries and will be given more time to make the cuts. The least developed countries also will be exempt from commitments to decrease tariffs, while the richest nations could be required to accept all those countries' imports duty free.

The draft also allows countries to decide if they should be categorized as developing nations. Developing nations won't have to make tariff and subsidy cuts on goods they consider important to their national identity.

"If you allow countries to define what is in this category without limitation, then the purpose of this meeting is defeated," Goodlatte said.Copley News Service: