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Brazil wants bigger eu farm concessions

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   http://www.forbes.com/markets/feeds/afx/2005/12/12/afx2384046.html

http://www.forbes.com/markets/feeds/afx/2005/12/12/afx2384046.html

AFX News Limited
No global trade deal without bigger EU farm concessions - Brazil UPDATE
12.12.2005, 02:06 AM

HONG KONG (AFX) - A global free trade agreement will not be possible unless the European Union makes bigger concessions on agriculture subsidies, Brazilian Foreign Minister Celso Amorim said.

'Unless the European Union improves its offer on agriculture, I do not believe we can complete the Doha cycle,' Amorim told reporters.

The Doha Round of trade talks was launched in 2001 and is due to be completed by the end of 2006 with an accord whereby developed countries open up their agriculture markets in return for free access for their industrial goods and services in the developing world.

Amorim stressed, however, that he sees the Doha Round as above all intended to help the developing countries, with farm trade reform at its core.

'Agriculture is the engine (of the negotiations) and market access is the starter,' he said, adding that if there is progress on this issue, then there would be a proportionate response by the developing world.

The Brazilian foreign minister said he welcomes the US proposal for substantial cuts in farm subsidies but this was only half or two-thirds of what needs to be done and the process has to be completed.

The EU must match this offer, he said, noting: 'What the EU does not do, others won't do.'

Amorim said he does not expect the Hong Kong World Trade Organisation meeting, starting tomorrow, to bring an overall accord but it could make some progress to keep the momentum going for further talks.

'Clearly unless a miracle occurs, we won't have a final deal in terms of modalities in Hong Kong ... (but) it can still be a success in paving the way to a full agreement in 2006.'

He suggested one way area of progress could be highly technical talks on specific categories and tariff levels, adding that pressure would be put on the negotiators if they agreed a cut off date, perhaps 2010, for subsidies.

Such a deadline would interest all parties, even the EU, because otherwise 'these games would go on and on,' he said.

bmm/nh/rc



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