✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

UPDATE 1-Cairns Group meets on agriculture, Doha trade round

Published 06/07/2009, 05:12 AM
Updated 06/07/2009, 06:48 AM

* Trade ministers aim to seek ways to reinvigorate Doha round

* U.S. Trade Representative Ron Kirk to attend

* EU and U.S. dairy export subsidies to be discussed

By Gde Anugrah Arka

NUSA DUA, Indonesia, June 7 (Reuters) - Nineteen leading agricultural exporting nations, including Australia, Brazil and South Africa, kicked off talks in Bali on Sunday aimed at pushing forward troubled world trade negotiations.

As well as seeking to move forward the stalled Doha trade round, the Cairns Group of nations -- accounting for more than 25 percent of the world's agricultural exports -- is also expected to take aim at U.S. and European dairy export subsidies.

Despite the global economic crisis sharpening pressures for protectionism, there are also hopes political conditions for a world trade deal are improving.

U.S. Trade Representative Ron Kirk is due to attend the three-day meeting in the resort of Bali, as well as officials from the European Union and India. WTO Director-General Pascal Lamy is also scheduled to attend.

"We can't conclude (the Doha round) unless we have the combination of technical work being done to conclude the very difficult and outstanding issues and the political will to drive it," Australian Trade Minister Simon Crean told reporters.

"I hope this meeting ... will reinsert that political will," added Crean, who is chairing the meeting.

The new Obama administration is conducting a review of U.S. trade policy including efforts to reach a deal on Doha and some of America's trading partners have been impressed by Kirk's conciliatory style, though they are still waiting to see the substance.

According to a draft document obtained by Reuters, the talks would include "How can the Cairns Group best exert influence to reinvigorate the negotiations and finish the (Doha) Round."

The protection of farmers from price swings or market implosions, such as subsidies for agricultural products, has emerged as one of the trickiest topics in the Doha round.

The United States in May moved to subsidise some of its dairy exports, saying it was forced to respond to new European subsidies that have made it hard to compete in global markets depressed by the economic downturn.

Australia, a top dairy exporter, would continue to argue "very strongly" against the subsidies, Crean said.

Indonesian Trade Minister Mari Pangestu said the Bali meeting would also discuss obstacles preventing the 153 World Trade Organisation members from wrapping up the Doha round.

"The Cairns Group wants to eliminate huge agricultural subsidies and export subsidies for agricultural products by developed countries which have distorted global trade and hurt poor farmers in many developing countries," Pangestu told reporters late on Friday.

Trade ministers came close in July 2008 to a deal on the Doha talks, launched in the Qatari capital in late 2001 to help poor countries prosper through trade.

But that meeting collapsed over differences between Washington and big emerging countries such as India and China over a proposed safeguard to help farmers in poor countries withstand surges in imports.

A critical factor to moving trade talks forward could be an expected meeting on the sidelines of the talks between U.S. trade representative Kirk and India's new trade minister, Anand Sharma.

When asked whether such a bilateral meeting could help progress, Crean said: "I think so. I think that, always with these difficult outstanding issues, it's the face-to-face engagement that matters."

The Cairns Group consists of Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, the Philippines, South Africa, Thailand, and Uruguay. (Additional reporting by Yayat Supriatna in Jakarta; Editing by Ed Davies and Jery Norton)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.