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Home >> Business
UPDATED: 11:18, November 19, 2005
EU to push for cotton subsidies cut in HK talks
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The European Union (EU) will push for a substantial cut in cotton subsidies at the Hong Kong WTO trade talks next month to help poor African countries, an EU spokesman said Friday.

"Our new proposal is that all cotton subsidies be eliminated from day one of the implementation of the Doha agreement," said Peter Power, trade spokesman of the EU's executive European Commission.

Given the hardships suffered by African cotton growers, the EU is pushing for a wide-ranging agreement which eliminates cotton exports subsidies in developed countries and introduces duty free access for cotton by all developed and advanced developing countries, he said.

"As of 2006, 65 percent of support for cotton farmers will be decoupled from production," the spokesman said.

The United States, which currently produces 20 percent of the world's cotton, favors phasing out the subsidies by 2020.

The EU has proposed the elimination of all forms of export subsidies for cotton for all developed countries, provision of duty free access for cotton imports by all developed and advanced developing countries and a substantial reduction of trade supporting domestic support for cotton producers in developed countries, Power said.

The World Trade Organization (WTO) is to meet in Hong Kong in mid-December to try to agree the outlines of an international accord to cap the Doha Round negotiations launched in 2001 in the Qatari capital.

Benin, Burkina Faso, Chad and Mali, for which cotton is a vital export, have said their interests must not be sidelined at the Hong Kong summit.

The negotiations aim to produce a wide-ranging multilateral deal cutting tariffs, subsidies and other barriers to commerce while using trade to boost living standards in developing countries.

The West African cotton producers want the summit to fix a date for the elimination of cotton subsidies.

Source: Xinhua


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