Deal to end export subsidies

THE WORLD‘S leading trading nations have reached agreement on ending export subsidies on agricultural produce, report The Times and the Financial Times.

The late-night compromise was reached in Geneva on Saturday (Jul 31).

Negotiators representing 147 countries agreed to an interim accord that requires rich countries to cut billions of dollars of farm subsidies.

The agreement paves the way for more open markets for agricultural products, industrial goods and services worldwide.

Final talks are to be resumed next year after the U.S. presidential election.

But the accepted framework would see all export subsides and export support that may distort trade abolished.

The interim accord also called for “substantial reductions” in the levels of domestic support paid to farmers, such as, Europe‘s Common Agricultural Policy.

No figure has yet been put on “substantial”, but outlines suggest that support that limits production will be capped at 5%.

The French strongly opposed any reductions in agricultural support.

But President Chirac ordered his agriculture minister Hervé Gaymard to back down when there was no support for France from other member states, reports The Times.

“Gaymard was totally isolated,” an EU source told the paper.