Annan supports farm reforms

United Nations Secretary-General Kofi Annan has supported the demands of developing countries asking for the elimination of trade-distorting farm policies that affect the livelihood of farmers in poor countries.

"The reality of the international trading system today does not match the rhetoric (of improving the quality of life). Instead of open markets, there are too many barriers that stunt, stifle and starve. Instead of fair competition, there are subsidies by rich countries that tilt the playing field against the poor.

And instead of global rules negotiated by all, in the interest of all, and adhered to by all, there is too much closed-door decision-making, too much protection of special interests, and too many broken promises," United Nations Conference on Trade and Development (Unctad) Secretary-General Rubens Ricuperno said, as he read out Annan's message at the inaugural session of the meeting.

India has said a commitment by developed countries to eliminate distortions in their agriculture policies, through the reduction of domestic support and elimination of export subsidies, is the key to resolving differences on the contentious issue of farm trade.

"It is only when developed countries agree to take a few steps forward by removing of trade-distorting subsidies that the developing countries can take a step forward in the area of market access," Commerce and Industry Minister Arun Jaitley said, while addressing the plenary session of the Cancun ministerial meeting on the opening day.

The minister said Indian farmers wanted protection from the threat of subsidised agricultural produce in developed countries.

In his address, United States Trade Representative Robert Zoellick said as far as agriculture was concerned the US was willing to reduce domestic support, subsidies and tariffs dramatically, if others initiated similar steps.

Jaitley criticised World Trade Organisation (WTO) members for ignoring the development dimension of the Doha trade agenda, and pointed to the lack of progress on implementation issues and operationalisation of special and differential treatment provisions for developing and least developed countries.

Jaitley, however, said the tariff reduction formula for industrial products, proposed by the WTO, was acceptable to India. But, it was against mandatory duty removal in certain

sectors.

He also said the inclusion of the Singapore issues on the negotiating agenda was not desirable.

Annan's message

"The reality of the international trading system today does not match the rhetoric (of improving the quality of life)...instead of global rules negotiated by all, in the interest of all, and adhered to by all, there is too much closed-door decision-making, too much protection of special interests, and too many broken promises."