THE UNITED STATES, UNDER PRESSURE ON FRIDAY TO HELP BREAK A DEADLOCK IN TRADE TALKS, DEFENDED ITS PLANNED FARM SUBSIDY CUTS AND SAID OTHERS NEEDED TO HACK DEEPER INTO THEIR IMPORT TARIFFS BEFORE IT COULD MOVE MORE, ACCORDING TO REUTERS. U.S. AGRICULTURE SECRETARY MIKE JOHANNS TOLD REPORTERS IN GENEVA, WHERE WORLD TRADE ORGANISATION MEMBER COUNTRIES ARE TRYING TO NARROW GAPS ON FARM AND INDUSTRIAL TRADE, THE UNITED STATES WAS OFFERING "FUNDAMENTAL CHANGE" TO ITS SUBSIDIES. MINISTERS FROM ABOUT A THIRD OF WTO MEMBER COUNTRIES ARE BATTLING TO FIND COMMON GROUND ON A PROPOSED DEAL TO LOWER FARM TRADE BARRIERS AS A VITAL STEP TO A BROADER GLOBAL PACT. THE DOHA ROUND OF NEGOTIATIONS, LAUNCHED IN 2001 AND AIMING AT BOOSTING TRADE AND REDUCE POVERTY, IS FAST RUNNING OUT OF TIME TO BE CONCLUDED AND TENSION IS HIGH. "HOW COULD ANYBODY ARGUE THAT IT IS NOT A MEANINGFUL REDUCTION, WHEN LITERALLY WE ARE SAYING THE VERY HEART OF THE U.S. FARM PROGRAMME IS DIRECTLY IMPACTED BY THE CUTS WE HAVE PUT ON THE TABLE?" JOHANNS SAID. "IT IS VERY, VERY REAL." WASHINGTON HAS SAID IT WILL CUT ITS WTO ALLOWANCE FOR MOST TRADE-DISTORTING SUBSIDIES, THE "AMBER BOX", BY 60 PERCENT. CRITICS SAY OVERALL, THE U.S. OFFER WILL NOT NECESSARILY CUT INTO ACTUAL SPENDING BECAUSE THEY CAN MAKE UP THE PAYMENTS FROM OTHER AREAS, GIVING THEM A BUDGET OF AROUND $22 BILLION. JOHANNS SAID THOSE CLAIMS WERE NOT ACCURATE. "THE MAJORITY OF THE SUBSIDIES WE WOULD RUN THROUGH U.S. FARM PROGRAMMES OPERATE THROUGH THE AMBER BOX," HE SAID, ADDING THE 60 PERCENT PROPOSAL WOULD CUT THAT SPENDING ALLOWANCE TO $7.6 BILLION FROM AN ESTIMATED $12.5 BILLION IN 2005.
