This is Steve Ember with the VOA Special English AgricultureReport.
In September, the World Trade Organization meeting in Cancun,Mexico, ended without an agreement. There was strong debate aboutpayments to farmers in developed nations. More negotiations areplanned for December in Geneva.
At Cancun, the United States had proposed that major industrialnations reduce payments to farmers by seventy-six percent over fiveyears. It also proposed they end all agricultural subsidies bytwo-thousand-fifteen. In return, the plan called for developingnations to lower taxes on imports and to open their markets toforeign investors.
Developing nations formed a coalition called the Group ofTwenty-two. They said rich nations were not willing to offer enough.After the talks ended, American Trade Representative Robert Zoellicksaid the United States would move toward free trade with “can-docountries.” He criticized what he called “won’t-do countries.”
Brazilian Foreign Minister Celso Amorim told Newsweek magazinethat the talks did not end because of agriculture. He says themeeting broke down over demands by wealthy nations to discuss rulesfor government purchasing, trade financing and competitiveness.
Brazil has been a major organizer of the group. China and Indiaare also members. Others include Argentina, Egypt, Indonesia,Mexico, Nigeria, Pakistan and South Africa.
But the group no longer has twenty-two members. Last week anotherLatin American country informed the others of its decision to leave.Costa Rica joined Colombia, Peru and El Salvador.
Each year, rich nations spend aboutthree-hundred-thousand-million dollars on farm subsidies. Subsidiespermit nations to reduce the price of their exports. This can forcedown prices on world markets.
At Cancun, African and Caribbean nations objected to thesubsidies for American cotton farmers. The farmers have highproduction costs. The government pays them more thanthree-thousand-million dollars a year.
The European Union pays large subsidies to keep its agriculturalproducts competitive. Japan places import taxes of up toone-thousand percent on foreign rice.
After Cancun, some experts say poor nations are in a betterposition to negotiate. Others, like the Brazilian foreign minister,say the talks were only part of a continuing process.
This VOA Special English Agriculture Report was written by MarioRitter. This is Steve Ember.