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Portman seeks deeper farm tariff cuts

WASHINGTON (AP)--U.S. Trade Representative Rob Portman urged European negotiators Nov. 2 to promise deeper agricultural tariff cuts at crucial trade meetings this week and said global trade talks in December could be jeopardized if they don't.

European and U.S. farm subsidies and tariffs, and the extent to which countries will cut them, have become the focus of talks aimed at forging a deal before December's meeting of the World Trade Organization's 148 countries in Hong Kong.

"If we can't pull together next week," Portman said, speaking about the U.S.-Europe agriculture negotiations, "I think it's very difficult to see how we can pull together the other issues ... in time for a successful Hong Kong meeting. So the pressure's on."

The fate of the WTO talks, Portman told lawmakers at a House Agriculture Committee hearing, "hangs in the balance because of the lack of progress in agriculture. Much of the responsibility on this lies with the European Union."

The WTO talks are meant to boost the world's economy by lowering trade barriers.

Poorer countries want the United States and the European Union to make substantial cuts in aid to farmers, saying rich-nation subsidies keep world prices artificially low and undermine the poor countries' exports.

The deadlock on agriculture has proven tough.

On Oct. 29, the European Union offered to reduce average agricultural tariffs by 46 percent, which would be its steepest ever farm tariff cuts but would remain well below what the United States had proposed. In exchange for opening its farm market, the EU wants concessions in other areas, notably service industries and market access for industrial goods.

Messages left by The Associated Press with EU offices in Washington weren't immediately returned Nov. 2.

U.S. Secretary of Agriculture Mike Johanns told lawmakers that this week's talks are crucial to an eventual overall agreement. A deal could happen, Johanns said, "but it will require a better proposal by the EU."

He said the United States "will not settle for a package that does not increase real market access. To be frank, a new global pact is in jeopardy unless Europe shows still more flexibility. ... Time is clearly running out."

Meanwhile, Ukraine's prime minister sought support from the Bush administration in joining the World Trade Organization, which promotes free trade.

Speaking to reporters after a meeting with Secretary of State Condoleezza Rice, he said in Ukrainian that she assured him good relations with Ukraine were a priority for the Bush administration.

Date: 11/23/05


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