WTO’s ministerial in Nairobi in choppy waters

The WTO reached deals on agricultural export subsidies, food aid and other issues on Saturday. “Africa’s farmers simply can not compete against heavily subsidised farmers in developed countries”, Kenyatta said here on Tuesday.

The US, the EU, Australia and Brazil are strongly advocating a closure to the Doha round, but India, the G-33 group of developing countries and many African countries are opposing it.

India opposes non-reaffirmation of DDA at Tenth Ministerial Conference of the WTO, Nairobi.

For those remaining subsidies, the agreement binds WTO members – which numbers 162 countries – to not damage a significant industry in another member state with these payments.

They also agreed on flexible rules of origin and exports of LDCs for promotion of exports from LDCs that will facilitate integration into global trade.

He said developed countries should address the concerns of developing nations on issues of subsidies and access to markets for their products. “Given the scale and significance of New Zealand’s agricultural export earnings, the removal of any instrument that can distort market forces and disadvantage our exporters is an important step forward”, says Federated Farmers National President Dr William Rolleston.

Kenya’s Foreign Minister Amina Mohamed said she was confident that the Nairobi talks had actually “strengthened” the body over the week.

“Kenya exports products to Turkey to the tune of Sh900 million ($8.7million) while imports are to the tune of Sh14 billion ($136 million)”, he said and asked Turkey to support Kenyan companies in the tea trade.

The poor countries insist a timeline that considers the immediate lifting of the subsidized production of crops such as cotton, maize and other products, should be agreed at the Nairobi meeting.

“Both developed and developing countries should work towards building bridges and strengthening diplomatic ties in addressing challenges facing our people”, said Cabral.

And while a deal appeared close in 2008 it was now clear “a comprehensive outcome from the round is no longer in prospect”, he said in Nairobi.

Later in an open-ended agriculture meeting here, Sitharaman said that export competition is one of the pillars of agriculture negotiations and these negotiations are finely balanced on three pillars and “taking out one pillar will disturb the balance”.