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China tells wealthy nations to cut farm subsidies

Published 11/16/2009, 10:19 PM
Updated 11/16/2009, 10:21 PM

BEIJING, Nov 17 (Reuters) - China has called for wealthier nations to eliminate agricultural subsidies and give greater market access to developing countries, the Xinhua news agency reported, citing officials at a global summit on food security.

Agriculture is one of the biggest sticking points in the Doha round of trade talks, with developed countries seeking greater access to developing markets and developing countries sharply critical of rich nations' support to the farm sector.

"All countries should jointly oppose trade protectionism in all its forms and manifestations and push for a positive outcome of the Doha Round negotiations," Xinhua quoted vice premier Hui Liangyu as telling the summit that opened in Rome on Monday.

The summit is being hosted by the UN Food and Agriculture Organization.

Hui urged developed countries to slash agricultural subsidies, remove trade barriers and give greater market access to developing countries. He called for developed countries and international organizations to provide financial, technological, market and capacity-building assistance to developing nations.

He reiterated China's long-standing goal of investing more in agriculture to raise food production and increase self-sufficiency, in order to overcome the "dual pressure of an international financial crisis and a global food crisis", according to the report.

China insists on meeting about 95 percent of its grains consumption, although it long ago gave up on trying to be self-sufficient in soy beans crushed for cooking oil and animal feed.

It discourages corn imports and has at times in the past enacted export bans and tariffs on flour and starch to ensure sufficient domestic supply, although it is currently encouraging corn exports with subsidies.

China also has on-again, off-again trade spats over its meat and poultry imports, and fish exports, with trading partners including the United States.

(Reporting by Lucy Hornby; Editing by Ken Wills)

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