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G20 urges WTO farm deal by April
(Reuters)
Updated: 2005-12-13 15:08

A draft deal on slashing rich nations' farm tariffs must be struck by April next year if a global pact to break down trade barriers is to be concluded in time, the Brazil-led G20 group of developing countries said on Tuesday.

The group also called on ministers at this week's World Trade Organisation meeting in Hong Kong to agree to an "immediate standstill" on the use of farm export subsidies and a date for their elimination.

But U.S. farmers groups said progress towards throwing open agricultural markets could only be made if Europe and Brazil stopped "posturing" and talked to each other properly, widening their negotiations.

"The EU must undertake greater commitments in agriculture. But we haven't seen a lot of what Brazil and India have got on the table," said Tom Camerlo, chairman of the U.S. Dairy Export Council.

"Soon -- today and tomorrow -- these (G20) countries have to come up with ideas on how they plan to handle things outside of agriculture," he added.

Top trade negotiators from nearly 150 countries are meeting this week in a bid to revive stalled trade talks but have already lowered their expectations for the gathering.

A deal must be struck by the end of 2006 if the United States is to get agreement from Congress before the president's special trade negotiating authority expires.

Discussions on how to lower trade barriers in agriculture, services and manufacturing industries have run into the ground as wealthy countries and developing nations argue over who should make the first concessions.

The EU, in particular, faces intense pressure to offer deeper cuts in its agricultural tariffs but says it cannot show its hand until Brazil and India come up with proposals to open their services and manufacturing markets.

Meanwhile, the G33 group -- that represents 45 developing countries including China and India but not Brazil -- also said it expects rich countries to protect its farmers from the effects of trade liberalisation by allowing members to designate at least 20 percent of tariff lines for possible protection.

"For us we can't move forward on the other areas of negotiations until our development concerns are met," said Indonesia's Trade Minister Mari Elka Pangestu.
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