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US to Cut Farm Subsidies by 60%, EU "will match, and indeed go substantially beyond"
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| St_Andrew |
http://news.bbc.co.uk/2/hi/business/4325914.stm
| quote: | EU and US offer big farm aid cuts
US Trade Representative Rob Portman, left, and EU Trade Commissioner Peter Mandelson
The EU has vowed that it will more than 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 saying that the EU "will match, and indeed go substantially beyond" that reduction.
The WTO meeting in Zurich aims to bring about a trade treaty by year-end.
Tit-for-tat
Mr Mandelson said that "Europe is ready and willing" to find an agreement.
"It's the step that we asked them to take," he continued. "They have, and I welcome it."
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.
No details were made public about the European offer.
Writing in the Financial Times newspaper, Mr Portman said the US had made the offer "to jump-start our stalled negotiations".
He added that the US "is prepared to move, and move aggressively".
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.
Wealthier nations are concerned that low-cost products would flood their markets, putting many of their farmers and companies out of business.
'Contributions'
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.
Pascal Lamy, the director general of the WTO and a former trade commissioner of the EU, said the US and the EU would have to make changes to their agricultural policy if an agreement was to be reached.
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.
UN Secretary-General Kofi Annan gave his support to the proposals saying, "a genuinely free and fair trading system" would be the best way to help the world's poor.
He added that subsidies "undermine the agricultural productivity and effectiveness of Third World producers".
Canada's Trade Minister Jim Peterson said that the US proposal was a positive start but warned that "we still have a long way to go". |
How the hell did that just happen?! So ing awesome tho. Can't believe it. Must be something I'm missing, France will screw this up somehow.
If this indeed is true, then this is a great day for the world. |
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| Fir3start3r |
| quote: | Originally posted by St_Andrew
http://news.bbc.co.uk/2/hi/business/4325914.stm
How the hell did that just happen?! So ing awesome tho. Can't believe it. Must be something I'm missing, France will screw this up somehow.
If this indeed is true, then this is a great day for the world. |
Good news indeed!
I was about to mention France too...
What was it they blocked last time? I forget... :conf: |
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| Yoepus |
| This is a sad sad day for all of us in the Ketchup industry:( |
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| MrSquirrel |
| quote: | Originally posted by Yoepus
This is a sad sad day for all of us in the Ketchup industry:( |
Set up a non-profit organization to promote peace and unity, which in turn takes government aid and then funnels it secretly to your ketchup farm by means of buying it at 7000 dollars a bottle :D
MrS |
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| h0tsweetbabyd0l |
....CAP has to be reformed ....but well i don't think it's a great day or ....amazing .....i just accept it relunctantly .....
:nervous: |
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| trancaholic |
| quote: | Originally posted by St_Andrew
http://news.bbc.co.uk/2/hi/business/4325914.stm
How the hell did that just happen?! So ing awesome tho. Can't believe it. Must be something I'm missing, France will screw this up somehow.
If this indeed is true, then this is a great day for the world. |
A political commentator in Denmark described the US proposal and the EU answer as "hot air". Wait cheering until something really happens. |
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| Yoepus |
| quote: | Originally posted by trancaholic
A political commentator in Denmark described the US proposal and the EU answer as "hot air". Wait cheering until something really happens. |
Phew! *wipes sweat of head* |
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| St_Andrew |
| quote: | Originally posted by trancaholic
A political commentator in Denmark described the US proposal and the EU answer as "hot air". Wait cheering until something really happens. |
Probably, it's one of those things that were just too good to be true. |
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| Sunsnail |
| Ok, so why is this good |
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| Sunsnail |
| I see. So this should promote people to grow more in Africa? :conf: |
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| St_Andrew |
| quote: | Originally posted by Sunsnail
I see. So this should promote people to grow more in Africa? :conf: |
Yes, or rather, it would make it a hell of a lot easier for those economies to grow. |
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