Major breakthrough in World Trade talks

Key trade ministers tentatively agreed on a plan to end export subsidies on farm products and cut import duties across the world today, a key step toward a comprehensive global accord, officials said.

Key trade ministers tentatively agreed on a plan to end export subsidies on farm products and cut import duties across the world today, a key step toward a comprehensive global accord, officials said.

The deal was expected to be approved by all 147 members of the World Trade Organisation (WTO) in Geneva tonight, opening the way for full negotiations to start in September.

“Developed countries have recognised that agricultural trade with a heavy subsidy component is not free trade,” said Indian trade minister Kamal Nath.

But he said that the US, European Union and other developed countries will also benefit by removing heavy agricultural subsidies from their budgets.

In a breakthrough today some 20 key countries approved a document setting out the framework for a legally binding treaty, WTO spokesman Keith Rockwell said.

The document will commit nations to lowering import duties and reducing government support in the three major areas of international trade – industrial goods, agriculture and service industries such as telecommunications and banking.

The deal will restart that long-stalled “round” of trade liberalisation treaty talks that were launched by WTO members in Doha, Qatar, in 2001, but delayed by the collapse of the body’s ministerial meeting in Cancun, Mexico, last year.

In agriculture, the document agrees to eliminate export subsidies and other forms of government support for exports, while making big cuts to other subsidies. It includes a “down payment” that would see an immediate 20% cut in the maximum permitted payments by rich nations.

The highest agricultural import tariffs will face the biggest cuts, although no figures have yet been agreed. Nations will have the right to keep higher tariffs on some of the products they consider most important.

Tariffs on industrial products will also be cut according to a formula, but the exact details have yet to be established. Developing countries will have longer to make the changes.

The deal also approves the launch of new negotiations on speeding up the movement, release and clearance of goods by streamlining customs procedures.

Developing countries in particular have been congratulating themselves for forcing issues onto the agenda that they say were ignored by rich nations in the past – such as the devastating effect of US cotton subsidies on producers in Africa.

The so-called Group of 20 developing nations, led by Brazil, has had a major influence on discussions over the past year, and Brazil was one of the major players in drafting this week’s agreement.

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited