Farming high on trade talks agenda in Mexico

Deeply divided over the make-or-break issue of farm subsidies, rich and poor countries begin five days of talks today aimed at…

Deeply divided over the make-or-break issue of farm subsidies, rich and poor countries begin five days of talks today aimed at preparing the ground for a deal to tear down barriers to global trade.

Concessions in the world trade talks needing further reform of the Common Agricultural Policy (CAP) "should not and would not be given", the Minister for Agriculture and Food said yesterday.

Before his departure for the WTO negotiations in Cancún, Mexico, yesterday, Mr Walsh said this was his bottom line for the talks between representatives of the 146 WTO members.

Progress at the meeting would be a shot in the arm for the still-fragile world economy. Stalemate would encourage governments to strike deals with each other, sapping the strength of the multilateral trading system overseen by the World Trade Organisation and possibly splitting the world into rival blocs.

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A group of 21 developing countries is putting aside its differences to present a united front and demand the elimination of all farm subsidies - something the United States and the EU have said is a political non-starter.

"The prospects of us in Cancun dealing with this extremely big and complex agenda are difficult," said South Africa's trade minister, Mr Alec Erwin.

"But certainly, if you don't make progress in agriculture, the G21 grouping of countries have indicated there's no merit, there's no justification, there's no validity in attempting to make progress on other matters," Mr Erwin said.