030401

EU to plough on with WTO farm talks

LONDON: The European Union will push on with global farm trade talks, despite the abandonment of Monday's deadline for an outline agreement on reform, European Union Agriculture Commissioner Franz Fischler said.

The farm talks - partly covering the sensitive topic of subsidies, which can make or break governments - are a vital element in the current round of World Trade Organisation negotiations launched in the Qatari capital Doha in 2001, and due to finish by the end of 2004.

"We all know that there are still many outstanding issues to be dealt with but let's be realistic - if the March 31 deadline is missed, is it really the end of the world?" Fischler asked delegates at a farming conference in London.

"What is far more important now is that we keep the process moving and focus our attentions making sure the next ministerial meeting in Cancun will be a success," he added, referring to a September meeting where WTO members will hold a mid-term progress review on their objectives.

Bitterness between the United States and major EU countries over the US-British intervention in Iraq, as well as anger the action has sparked in many developing countries, had already raised questions over the round's prospects.

Fischler said that with conflict in Iraq, there were other important issues to address, but he did not envisage a lasting impact on the Doha talks.

"I don't doubt that all parties concerned in multilateral trade negotiations will continue to do their best to ensure that the Doha Development Round will be a success," he said.

However, in a swipe at some other WTO members, Fischler said the EU could not be alone in its commitment to reducing trade-distorting subsidies to its farmers.

Panel formed to look into US complaint

The World Trade Organisation (WTO) on Monday agreed to set up a panel to look into US complaints that Canada was breaking global rules with government measures regulating the wheat trade.

The three-man panel, yet to be appointed, will have six months to come up with a ruling.

The US attack focusses on what it says are "exclusive and special privileges" granted to the Canadian Wheat Board for purchasing wheat from western Canada at prices decided by it or the government for export or domestic consumption.

Government guarantees for the Board's financial operations, including borrowing, credit sales to foreign buyers and initial payments to farmers, are further violations of WTO agreements, the United States argues.

In its complaint filed at the WTO at the start of the month, it also asserts that Canada is breaking the organisation's rules by segrating imported grain from Canadian grain in the country's grain-handling system.

Move against Australia

The European Union has decided to launch a challenge at the World Trade Organisation (WTO) over Australia's quarantine system for imports of agricultural products, the EU Commission said on Monday. "Australia has built a quarantine system which is highly efficient at blocking the imports of agricultural products into this country," the EU's executive Commission said.

"We believe this system flagrantly breaches WTO rules, despite Australia's constant claims to be the only beacon of free agricultural trade," it said in a statement.

The EU's move against Australia comes on the day of the WTO's now-broken deadline to agree the framework for talks over global farm trade liberalisation. Australia and the United States have been fierce critics of the EU's farm policies, saying the 15-nation bloc must do more to slash subsidies.-Reuters