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The Toronto Star | October 9, 2003

Substantial talks to liberalize farm trade will be held up by next year's U.S. presidential election and expansion of the European Union, Canada's ambassador to the World Trade Organization said yesterday.

The WTO's Doha round, as the talks are called, aims to remove trade barriers, especially in agriculture.

But after ministers from 148 countries failed to agree on U.S. and EU proposals last month in Mexico, few observers now see the round wrapping up by the end of 2004 - the original deadline.

"Now the real chore is to try to narrow the gap between the EU and the United States ... and the rest of the (WTO) membership," Canada's WTO ambassador Sergio Marchi said. "Obviously, an election in the United States adds an additional layer of complication and intrigue."

The U.S. election and the addition of 10 new members to the EU next year will "test the leadership and generosity" of those two major economic blocs, Marchi said.

At stake are the huge subsidies rich countries pay their farmers, even as farmers in poor countries - cotton farmers in Africa or fruit farmers in Latin America - for example, must struggle to sell into the world's top markets.

A successful end to the Doha round would raise global income by more than $500 billion (U.S.) a year by 2015, the World Bank says.

WTO diplomats next meet in Geneva in two weeks.

"I think most (WTO diplomats) feel that, because of the Cancun outcome, that the Doha agenda has been put to a slower track," Marchi said. "I don't see that as fatal."

He called on Australia, Canada, Chile, China, Costa Rica, Hong Kong, New Zealand, Singapore and Switzerland to take the lead in the Doha talks by discussing farm production and export subsidies, plus market access, specifically for African cotton.The Toronto Star: