China urges West to cut farm subsidies

Published September 6, 2006

BEIJING, Sept 5: Chinese Premier Wen Jiabao urged developed nations on Tuesday to cut agricultural subsidies and tariffs as a way to reinvigorate stalled global trade talks.

Wen told World Trade Organisation (WTO) head Pascal Lamy that China was concerned over the breakdown in the Doha Round of negotiations and called for the early resumption of negotiations, China state radio reported.

“The completion of the Doha talks is very important to the establishment of a fair, just and opens multilateral trade system and is a necessary condition for realising the stable development of world trade,” Wen was quoted as saying.

“Developed nations must lead by making substantial concessions like cutting their agricultural subsidies and tariffs.”

Wen told the WTO chief that China will make efforts with all sides to strive for the early resumption of the Doha Round, state radio said.

“China supports the multilateral trading system and opposes trade protectionism,” he said.

Lamy urged Beijing to play an active and constructive role in restarting the stalled trade negotiations.

“Everyone values the important role of China in the Doha Round of negotiations,” China's trade ministry quoted Lamy as telling Chinese Trade Minister Bo Xilai in talks on Monday.

“China is an active participant in the negotiations and we hope the Chinese side can play an even bigger role,” Lamy said according to a statement posted on the ministry's website.

Bo also urged rich nations to make more concessions to revive the stalled Doha Round and called for the early resumption of talks.

He made a similar call last week for developed nations to “contribute” while meeting with Susan Schwab, the visiting US trade representative.

Beijing has actively participated in the Doha trade talks while “earnestly” implementing commitments it agreed to upon entry to the multilateral trading body five years ago, Bo said.

“The Doha round is a development round; negotiations should not only seek progress on market access issues but should fully embody the realisation of the development goals,” Bo said.

“Only by changing the unbalanced situation between the developed and developing members can we advance the sustained and healthy development of global trade,” he added.

Lamy pledged that efforts to ensure the interests of developing countries would be advanced if the round resumed successfully, the commerce ministry statement said.

In late July, Lamy suspended five years of Doha Round negotiations because of a failure by the six major trading powers to reach a compromise on tariffs and subsidies.

At the same time, he asked WTO members not to withdraw their existing liberalisation offers. —AFP

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