Trade ministers meeting in Paris resolved a dispute over agricultural tariffs that have slowed global trade talks, wire services report.
The center of the dispute focused on how to convert flat-rate duties into more common percentage tariffs based on the goods' value. Countries who subsidy the farmers, including the United States, contend that they will not reduce subsidies unless other markets provide additional market access with lower tariff barriers.
The compromise deal was reached shortly after the European Union submitted a "new constructive proposal," Dow Jones reports. Until the last minute, the EU was looking to keep percentage cuts low to protect sensitive commodities. E.U. beef, poultry, rice and dairy products would be particularly affected by the disputed tariff calculations, the wire report says.
The entire 148 members of the WTO body will now need to approve the tariff calculation base, which is expected sometime in the next few weeks. The agreement sets up continued advancement of the Doha Round of negotiations--talks that are already delayed nearly two years.
The tariff reduction calculation is essentially the first play of cards in a series of events that will lead up to a Hong Kong ministerial meeting this December. This summer countries are expected to indicate more specifically how much they are willing to reduce subsidies for increased market access while still providing a profitable environment for producers in developing countries.