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Developing Countries See Imbalance WTO Ag Proposals

The G33 group of developing nations say recent WTO proposals, which call on the U.S. to cut domestic support, perpetuate an imbalance in agricultural trade.
Compiled by staff 
Published: May 8, 2007

The chair of the World Trade Organization's special committee on agriculture, Crawford Falconer, released a paper last week challenging the U.S. to lower trade distorting subsidies to below $19 billion per year. U.S. officials have questioned the merits of the paper - and so have developing countries.

The G33 group, made up of 46 developing countries including China, India and Indonesia, say that the paper "does not • provide a good starting point because of severe imbalances in the treatment of developed countries and developing countries' issues.

The group says that imbalance "would only lead to perpetuate the existing structural flaws and distortions in agricultural trade."

The G20 group of developing ag exporters, including Brazil, took a different tack, calling the proposals "challenging, provocative, and thought-provoking."

Agricultural issues, including U.S. domestic farm subsidies, are central in WTO attempts to restart Doha world trade negotiations.

"There is not only one delegation who would like the U.S. not to do a lot more on domestic support," Falconer told journalists on Monday.

U.S. officials, however, question the feasibility of Falconer's proposals. "While we recognize the need to make a further contribution to this pillar, there are limits as to what is realistic."



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