High hopes for WTO deal

HOPES ARE building that the 147 members of the WTO can agree to a basis for negotiating a deal to slash farm subsidies and import tariffs.

Five core members – the US, the EU, Brazil, Australia and India – agreed to principles on cuts in farm aid by industrial nations on Friday (July 30).

“I think there‘s enough of a genuine wish across all the main groups to get a deal,” Christopher Roberts, former UK director general of trade, told The Independent.

Mr Roberts said that failure to reach a deal would hurt African farmers and keep prices at an artificial level in Europe.

According to The Independent, the world‘s richest countries spend $370bn (£200bn) a year on farm subsidies, while 96% of the world‘s farmers, or 1.3bn people, live in developing countries.

The World Bank has estimated that slashing subsidies and tariffs would help lift 144m people out of poverty.

In spite of opposition from France, the European Commission is offering to eliminate all export farm subsidies. Britain has demanded their elimination in the EU by 2010.

“We have to reform the world trading system so it is free and fair. As far as Europe is concerned, that means pulling down the appalling agricultural subsidies that distort trade with the rest of the world, much of which depends on farming,” said Patricia Hewitt, Secretary of State for Trade and Industry.