CBI chief demands end to 'unfair' farming subsidies
Confederation of British Industry (CBI) chief Digby Jones called on Europe and America today to “practise what they preach” on free trade by agreeing to slash agricultural subsidies.
Speaking as he prepared to meet British Trade Secretary Patricia Hewitt and the UK delegation to the World Trade organisation talks in Cancun, Mexico, Mr Jones said the EU and US should respond to demands from developing countries on farming.
Developing countries believe paying out subsidies to European and American farmers prevents their counterparts in the third world operating on a level playing field.
A new coalition of developing countries – styled the G21 – has been formed in Cancun to present a united front on behalf of those calling for reform.
Mr Jones, who will be advising the UK delegation at the talks on behalf of British business, believes Europe and America should respond to the new group’s position and believes that failing to do so could put hopes of agreement in jeopardy.
He said: “Agriculture has become the biggest single block to progress in the Doha development agenda which has the potential to benefit billions of people.
“The EU and US will fail to win the case for global free and fair trade unless they prove they can practice what they preach.”
The CBI chief believes the EU and US should set out specific proposals on cutting farm subsidies.
He said: “Trade ministers need to seize the moment and continue the process they all signed up to in Doha.
“Now is the time for action if the goal of free and fair trade to the benefit of developing and developed countries is not to be jeopardised.”
