Collapse : Farms : WTO closes in for the kill

2005-10-11

Richard Moore

    In an effort to revive stalled World Trade Organization (WTO)
    talks, US Trade Representative Rob Portman said the US would
    cut farm subsidies by 60%.
        EU Trade Commissioner Peter Mandelson responded by indicating
    that the EU was willing to at least halve it highest tariffs
    on farm imports.

Evidently, we are supposed to share the dismay that WTO talks
are stalled. As if us ordinary readers were in favor of elite
agendas! Media chutzpa.

Farmers are already struggling to survive. These measures will
mean the end of independent farming. Only mega-industrial
farming will remain. Farms will face bankruptcy, forcing down
land prices, and putting millions of farmers out of work.

One more brick in the wall of collapse.

rkm


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http://news.bbc.co.uk/1/hi/business/4325914.stm

EU move to match US farm aid cuts 

The European Union has moved to match a US offer to cut
controversial agricultural subsidies and tariffs.

In an effort to revive stalled World Trade Organization (WTO)
talks, US Trade Representative Rob Portman said the US would
cut farm subsidies by 60%.

EU Trade Commissioner Peter Mandelson responded by indicating
that the EU was willing to at least halve it highest tariffs
on farm imports.

The WTO meeting in Zurich aims to bring about a trade treaty
by year-end.

Tit-for-tat

The European Commission said Mr Mandelson had proposed that EU
tariffs which currently stand at 90% for some agricultural
imports should be cut by at least 50%, with smaller cuts for
lower tariffs.

Europe's response came after the US said its offer was valid
only if the EU and Japan also made large cuts in
trade-distorting support for agriculture.

"The US is willing to take some pain," said Mr Portman. "But
those who subsidise more need to reduce more."

As part of its plan, the US would cut key agricultural
subsidies by 60% before 2010, with trade tariffs slashed by up
to 90%.

Trade tariffs would eventually be phased out completely,
except on a limited number of "sensitive" products.

The US said it was also willing to tighten up its regulation
of export subsidies.

Distortions

Agricultural subsidies and trade tariffs were blamed for the
breakdown of WTO negotiations. Without some willingness to
compromise, analysts have warned that the chances of reaching
an agreement look slim.

The current round of WTO talks - called the Doha round and
aimed at producing a new global free trade agreement by 2006 -
are scheduled to start again in Hong Kong in December.

Developing nations want wealthier nations to stop helping
their farmers and producers with state aid, which they say
distorts market prices and makes it impossible for them to
compete.

They also want freer access to the world's most profitable
markets and are unwilling to open up their markets until they
get it.

'Contributions'

Wealthier nations are concerned that low-cost products would
flood their markets, putting many of their farmers and
companies out of business.

Mr Portman said that it was not only the wealthiest nations
that must be willing to find a compromise.

"Developing countries must also offer contributions,
commensurate with their role in agricultural trade," he wrote
in the Financial Times newspaper.

Representatives from 15 nations including China, India,
Australia, Brazil, South Africa, Rwanda, Hong Kong and Canada,
as well as the EU and the US, have gathered for the meeting in
Zurich.

Story from BBC NEWS: 
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4325914.stm 

Published: 2005/10/10 21:01:55 GMT 

© BBC MMV 
-- 


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