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Skorea joins fight against wto tariff cuts

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   http://www.nzherald.co.nz/latestnewsstory.cfm?storyID=3523151&thesection=business&thesubsection=latest

http://www.nzherald.co.nz/latestnewsstory.cfm?storyID=3523151&thesection=business&thesubsection=latest

South Korea joins fight against WTO farm tariff cuts

12.09.2003 9.40 am

CANCUN, Mexico - South Korea joined eight countries on Thursday in a bid to stop farm import duties from being slashed, a day after a South Korean killed himself to protest trade talks aimed at opening agricultural markets.

Seoul and such allies at the World Trade Organisation meeting as Japan, Norway and Switzerland fear a cap on duties will cripple their agricultural sectors, and are vying to change the deal being considered.

"If we push ahead with tariff capping, it could lead to crisis for Korea's farms," Farm Minister Huh Sang-man said. His and other countries set high tariffs on dairy, meat, grain and other goods to protect their industries.

Under a text that ministers have to agree on, countries would have to respect a ceiling on farm-goods duties. They would also have to boost tariff rate quotas.

The meeting in this Mexican resort city was marred by the suicide of a South Korean farmer on Wednesday. His friend said he stabbed himself in the chest during protests as an "act of sacrifice" to show disgust with the WTO and its policies.

The talks are part of the Doha Round of commerce negotiations, in which farm goods trade is key.

Developing countries have made a forceful push at the talks to get rich ones, including European Union members and United States, which subsidise their farmers, to make big concessions to open their markets.

But Japan has an import duty of 490 per cent on rice. Norway has tariffs of between 200 per cent and 500 per cent on dairy, meat and grain, while Israel taxes imports of apples and grapes at about 200 per cent.

Other countries demanding the changes to the farm text are Bulgaria, Iceland, Lichtenstein and Taiwan.

"We are prepared to open our markets but we cannot imagine that the outcome of this round must be the total elimination of agriculture in our countries," Swiss Federal Councillor Joseph Deiss said.

Ministers at the Cancun meeting must also agree to texts on industrial goods and other issues. The success of the meeting could determine if the Doha Round ends on time in 2004.

- REUTERS


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