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Brazilian FM: Agricultural subsidies to affect world food production
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14:28, August 08, 2008

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Brazilian Foreign Minister Celso Amorim said Thursday agricultural subsidies in industrial countries will affect food production across the world.

In an interview with state radio, Amorim said the world food crisis is closely linked to agricultural subsidies in developed nations as they discourage food production in developing countries.

The latest Doha Round of world trade talks, which started last month in Geneva, collapsed as underdeveloped countries urged for more cuts to farm subsidies in industrial countries, while developed nations complained about developing countries' failure to open up their markets for industrial products.

Amorim said an agreement in the Doha Round could eventually stimulate agricultural production in developing countries, adding that the Brazilian government doesn't believe it has been irrevocably closed.

Brazil's President Luiz Inacio Lula da Silva discussed resuming the Doha Round of talks with Chinese President Hu Jintao Thursday, while in China for the opening ceremony of the Beijing Olympic Games.

Amorim said Brazil has suffered a great deal from a lack of agreement in the Doha Round, but several other countries are in a much more difficult situation than Brazil.

"It is hard for them to resist the impact from subsidies in developed countries due to the lack of resources and other opportunities," he added.

Source:Xinhua



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