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Australia urges 'powerful signal' from US on trade talks
Posted: 04 September 2007 1633 hrs

  Australian Trade Minister Warren Truss (L) speaks with US Trade Representative Susan Schwab
 
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SYDNEY: Australia called on Tuesday on the United States to send a "powerful signal" on cutting farm subsidies to break a six-year deadlock in talks on freeing up global trade.

Australian Trade Minister Warren Truss issued the call after meeting with US Trade Representative Susan Schwab ahead of a summit of 21 Asia-Pacific economies that make up nearly 50 percent of world trade.

Truss, who also separately met with other regional counterparts, said a US farm bill that will be considered by the Democrat-dominated US Congress in the next few months was a concern.

His comments came as World Trade Organisation (WTO) envoys meet in Geneva over the next three weeks in a bid to break the long-standing deadlock in the so-called Doha round of negotiations on cutting tariffs and subsidies.

"Other countries, particularly agricultural producing countries, would like to see the United States make positive steps toward reducing its farm support and that would send a very powerful signal for the rest of the world," Truss told reporters.

"So yes we want the US to take action in relation to farm subsidies both in the context of its current farm bill but also in relation to the Doha round."

Truss said a US farm bill that "increases support or one which maintains some of the existing levels of farm subsidies is an unhelpful signal."

However, he said he was encouraged that Washington "knows that a Doha round would have to involve reductions in US farm support in return for improved market access in other parts of the world".

Truss said it was also important that other countries and trading blocs made corresponding concessions to Washington.

"It's unreasonable to expect one country to do all the heavy lifting.

"The US has got a right to expect that other countries will make appropriate concessions and also address the other non-agricultural market access issues which are important to concluding the round."

Schwab is in Sydney for a meeting of trade ministers of the Asia Pacific Economic Cooperation (APEC) forum ahead of the weekend leaders' summit.


- AFP/so

 


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