The Ministry said the talks come at a crucial time, as the US has tended to reduce its farm subsidies less than the EU.

Trade Negotiations Department deputy director-genera Winichai Chamchang said the EU and the US have the largest agricultural subsidies in the world, and this month's special meeting would be a major factor in completing the WTO's efforts on agricultural trade in the current Doha round.

"An agreement should break the deadlock in finding a formula for reducing agricultural subsidies," he said. "It should also make the Doha Round's goal of ending farm subsidies by 2010 come true, with fair conditions for all [WTO] members."

Agricultural subsidies have distorted the world trade system for many years. Although developing countries depend for their survival on agricultural exports, developed countries like the EU and the US spend huge sums to subsidise their domestic producers.

While the US has the highest subsidies in its agriculture sector, a recent meeting of WTO ministers and senior officials reach an agreement stating that the EU will reduce its aggregate subsidies by about 70 per cent and the US by about 60 per cent, Winichai said.

The difference has led to a conflict between the US and the EU, which led to the meeting this month.

Winichai said all developing countries must closely monitor the meeting because the participants were developed countries and the outcome may not benefit other countries dependent upon agricultural exports.

Meanwhile, Winichai said Thailand would propose to the WTO that sugar and rice be excepted from reductions in agricultural subsidies. He said sugar and rice are special products that still need government support in Thailand.

Petchanet Pratruangkrai, The Nation