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China, US agree on free farm trade
Published in The Saudi Gazette on 07 - 12 - 2008

The United States and China agree on the need to resist protectionist farm tariffs even in the face of the world economic crisis, the US agriculture secretary said Saturday, while urging action on a world trade agreement.
Ed Schafer told reporters that both countries are aware the tough economic times could lead to a protectionist backlash and are committed to guarding against one - a stance that could nudge along a seven-year effort to lower global trade barriers known as the Doha Round.
“We talked ... about the tendency in times of trouble to instill protectionism in one's country,” Schafer said after visiting a food products and services exhibition in Shanghai. “And we pledged as two of the world's largest agricultural producers to encourage the rest of the world to back away from protectionism.” But Schafer offered no specifics, and it was hard to tell if there was a promise of real movement on the Doha agreement, which was once hailed as a formula for lifting millions out of poverty. Talks collapsed in July after countries such as India and Brazil rebuffed an offer by the US and Europe to gradually reduce their farm subsidies in exchange for lower tariffs on food stuffs imported by developing countries.
Asia-Pacific leaders meeting at their annual summit agreed to send trade ministers to Geneva this month to try to break a logjam over farm trade. While analysts say they are not optimistic, US officials say they are making a strong effort to get a final agreement.
The US side is prepared to make “appropriate commitments” on cutting subsidies to farmers, a key sticking point, but a deal would require a reduction of trade barriers from others to help farmers and manufacturers weather the ups and downs of demand that the subsidies are meant to help counter, Schafer said.


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