WTO goes into overtime over farm export question

Associated Press

DOHA, Qatar — Ignoring an expired deadline, negotiators stretched their conference into an extra day Wednesday to save the World Trade Organization’s attempt to start much-anticipated talks to free up global commerce.

With the European Union — and especially France — resisting near-universal calls for an end to farm export subsidies, frenzied negotiators worked through the night on a compromise, desperate to avoid another collapse such as the WTO suffered in Seattle two years ago.

The EU’s attempt to extract concessions on environmental issues in return were blocked by developing countries led by India, said Nacer Benjelloun, Morocco’s ambassador to the WTO.

"At this stage, I am not very optimistic," he said, adding that India showed no signs of budging in the closed-door sessions.

Big agricultural exporting countries like Australia, Canada and Argentina, supported by the United States, insist that the round should look at the phasing out of the export subsidies, which they say allow EU farmers to export at below the market price, distorting and suppressing the world market in agricultural goods.

Poor countries, many of whom depend on agriculture as their principal exports, were backing the call for eliminating the subsidies.

The European Union says it is committed to making substantial reductions in the subsidies but will not agree to get rid of them entirely.

"We are doing our level best to inject as much creativity into this process as we can," said EU spokesman Anthony Gooch.

But within the 15-nation bloc, France was basically standing alone, with support only from Ireland, officials said.

French Trade Minister Francois Huwart told reporters the issue was "a sort of deal-breaker point," suggesting strongly that France would force the EU to walk away from the table rather than concede ground.

France, the world’s second-biggest agricultural exporter after the United States, has a powerful farm lobby — and presidential elections in just six months. The Irish government expects to call an election by next summer.

Speaking in neighboring Saudi Arabia during a two-day tour of the Middle East, French President Jacques Chirac said "France’s position, particularly over export subsidies, is legitimate."

He added that he still hoped there could be an agreement.

The EU, which votes as a bloc, appeared to be the key to getting a deal at the five-day meeting, which was to finish Tuesday. Diplomats said it would likely take most of the night to complete negotiations. Any deal must be approved by all WTO members.

Dutch Trade Minister Gerrit Ybema said it was still possible that the EU could change its position on export subsidies, but it would need something in return on the issue of environmental protection or labor standards.

"We haven’t received anything, so we want something," he said.