WTO "Mini" Ministerial in Montreal Spells Trouble for Cancun Talks

Agriculture subsidies stymie WTO talks
Last Updated Tue Jul 29 11:39:23 2003

MONTREAL-- A last-ditch effort will be made today in Montreal to salvage a World Trade Organization initiative to liberalize world trade. Trade ministers from 25 countries are attempting to determine if there will be any progress on the so-called Doha round of talks when the WTO holds a full meeting in Mexico this September.

One of the major sticking points is agricultural subsidies. Agriculture Minister Lyle Vanclief said there has to be agreement on reducing agricultural subsidies. Some developing countries have threatened to pull out of the talks over the issue.

Canada has blamed heavy subsidization by the European Union and the United States for depressing grain prices and causing economic hardship for Canadian farmers.
The EU has made some reforms to its agricultural policies, but Vanclief is not impressed.
"I think they have very cleverly crafted it in such a way that they may want to leave the impression they have now moved, and now it's everyone else's turn to move, and it can't just be that."

NGOs predict talks will fail
Some non-governmental organizations say such manoeuvres are typical of the rich nations, which want to keep everything working in their favour.

"There are serious splits on the agriculture front, serious splits with regard to the new issues, which have to do with investment and competition policy, and serious splits with regards to health care and education and a variety of other social issues …,"said Tony Clark, co-chair of a coalition of NGOs. His group predicted failure for the WTO.
The continued failure to reach agreement on these issues has WTO leaders calling for more flexibility. Otherwise, the Doha round could collapse – a move that could jeopardize the governance of international trade.
Anti-globalization protestors said they will be back on the streets of Montreal this morning.