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Sat, June 2, 2007 : Last updated 20:23 pm (Thai local time)



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Home > Business > Govt urged to join G-20 fight on farm subsidies





Govt urged to join G-20 fight on farm subsidies

A Brazilian diplomat yesterday lobbied the Thai government to join forces with the Group of 20 to urge the US and Europe to make a greater commitment to cutting farm subsidies to contribute to the success of World Trade Organisation talks.

Ministers of the G-20 emerging countries, led by Brazil and India, will hold preparatory talks on June 11 in Geneva to urge major WTO players to show more commitment on farm-subsidy cuts to unlock the WTO stalemate.

Brazilian Ambassador to Thailand Edgard Telles Ribeiro met with Agriculture and Cooperatives Minister Thira Sutabutra to urge Thailand to help rescue the stalled multilateral trade talks under the WTO by forming a common stance with the Group of 20 countries, whose main products are agricultural goods.

The agricultural producers are pressing the United States and the European Union to lower domestic and export farm subsidies as well as to open up wider access for imported goods.

Thira said after the meeting that Brazil's proposal resonates with Thailand's objective to see the big powers reduce subsidies, which would help bring farm prices on the world market down to a more realistic level.

Thailand wants major economies to reduce tariffs for products such as chicken, shrimp, sugar, rice, tapioca and tropical farm goods.

"The G-20 represents a big voice to push the major economies to reduce farm subsidies. The effort may not produce immediate results because the WTO consists of several countries. Nonetheless, the Thai government has been closely monitoring the progress of the talks," Thira said.

The G-20 groups 21 countries - Argentina, Bolivia, Brazil, Chile, China, Cuba, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, the Philippines, South Africa, Tanzania, Venezuela, Uruguay, Zimbabwe and Thailand.

The US, EU, Brazil and India are scheduled to meet from June 19-22 in  Europe to revive the WTO's Doha Round, which was suspended in July 2006 due to a lack of progress. The meeting will be focused on agriculture, a key sticking point in the round of WTO trade negotiations that began in the Qatari capital in 2001.

Developing countries are seeking reductions in farm subsidies by the rich countries, which in turn want greater market access for their industrial products and services.








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