World trade talks stall over subsidies issue

World trade talks neared their half-way stage today as nations remain divided over the core issue of how to cut billions of dollars…

World trade talks neared their half-way stage today as nations remain divided over the core issue of how to cut billions of dollars of subsidies to Western farmers.

The meeting of World Trade Organization (WTO) ministers aims to wrap up an accord by Sunday to revive talks on a new trade deal that the World Bank says could lift millions of people out of poverty and boost the flagging global economy.

But talks have got no further than a standoff between newly assertive developing countries and the European Union and the United States over agricultural commerce.

"Those who subsidise must make a greater effort to level the playing field in international trade and generate opportunities for all," said Argentine chief negotiator Mr Martin Redrado.

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His country is part of a new coalition of 21 developing nations, including powerhouses Brazil and India, that are demanding the European Union and United States make more concessions on farm trade in return for agreeing to open their own markets.

A deal on agriculture is central to the success of the meeting as developing nations blame the $300 billion in subsidies doled out each year to EU and US farmers as the reason their farmers are blocked from world markets.

They also want the EU and United States to bring down barriers to food imports.