opposition

West meets tough opposition to farm subsidies

Washington and Brussels were last night trying to drive a wedge between a group of more than 20 developing countries which are holding out for deep cuts in the west’s lavish farm subsidies.

Despite the personal intervention of the US president, George Bush, the developing countries held firm yesterday and delayed the start of talks on agriculture, which are seen as crucial to a trade liberalisation deal in Cancun.

The EU, meanwhile, warned former colonies in Africa and in the Caribbean that their joining the so-called Group of 21 could well endanger their privileged access to Europe’s single market. Washington told Costa Rica, El Salvador and Guatemala that if they left the G21 they would get a “sweetheart deal” giving them increased access to America’s $10 trillion economy.

“At every ministerial meeting we see the US and the EU playing divide and rule while claiming to act in the interests of developing countries”, said Duncan Green, of the Catholic aid agency Cafod. “Nobody believes them any more.”

Ahead of this week’s meeting of ministers from the World Trade Organisation’s 146 member states, President Bush contacted the leaders of four key developing countries, India, Pakistan, Brazil and South Africa, in an attempt to prevent their opposition of a deal on agriculture agreed by Washington and Brussels.

Brazil has led the opposition to the modest concessions offered by the EU and the US, and has become the target of Washington and Brussels, seen as the main obstacle to the west’s agenda.

Celso Amorim, Brazil’s foreign minister, stormed out of a late-night meeting with Washington’s main trade negotiator, Robert Zoellick, after the Americans demanded Brazil withdrew the G21′s alternative proposal on agriculture. Mr Amorim told ministers yesterday that the G21 represented 63% of the world’s farmers: “Our proposed framework incorporates significant negotiating positions [and] has been carefully designed, technically as well as politically. It cannot be ignored. Already we see a new dynamic which hopefully can lead to real negotiations.”

The hardline stance of Brazil and its allies forced the EU and the US to plan separate meetings with the G21 yesterday before the agriculture negotiations. “It’s very difficult to put the hammer on countries like China, India and Brazil,” said one senior trade source. “They are powerful separately, let alone together.”

The deputy US trade representative, Peter Allgeier, warned that all member states would have to compromise for a successful deal. He said he was perplexed by the G21 which includes both large, food exporting countries, such as Brazil and Argentina, interested in finding new markets for their produce, and countries such as India, which traditionally favour protection for their small farmers. “It is not immediately obvious that they are a coherent group.”

Washington’s attempts to appease anger in the developing world through concessions on cotton also ran into difficulties. West African countries are holding out for real cuts in the $4bn (£2.6bn) the US spends yearly subsidising its cotton growers who flood world markets with their surplus produce, depressing the prices for reportedly more efficient producers in Benin, Chad, Burkino Faso, and Mali.

Sources in Cancun said that the US position was made more difficult because it had to get any deal on cotton through Congress, where the chairperson of the influential senate agriculture committee came from Mississippi, the biggest cotton producing state.

Fatiou Akplogan, Benin’s trade minister, said: “If nothing is done urgently this could lead to the total loss of revenue for our producers, an increase in poverty and destruction of our economic system.”

Yesterday, the director-general of the WTO, Supachai Panitchpakdi, took charge of the negotiations.

Tags: Farm, meets, opposition, Subsidies, Tough, West