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- Interview on ACRE
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GENEVA (AP) Brazil, India and other developing countries said Tuesday the new U.S. farm bill will be an obstacle to global trade talks aimed at lifting millions worldwide out of poverty.
A group of 20 developing nations also including China, Mexico and Argentina echoed criticism by WTO chief Pascal Lamy, who last week said the new U.S. farm bill sent a bad signal to the world while talks on a new global trade deal were continuing.
The emerging countries said the ``new bill heads agriculture policies in the wrong direction at a decisive juncture of the WTO Doha Round,'' referring to the trade talks, which started seven years ago in the Qatari capital of Doha.
The U.S. Congress last month passed a bill that provides new and bigger subsidies to U.S. farmers and more food stamps to help the poor buy food as grocery prices rise.
The 20 countries in a joint statement said the trade talks should bring significant reductions in trade-distorting subsidies in developed countries to boost agricultural trade and promote development.
But by allowing higher subsidy payments for certain commodities, the farm bill contradicts the purpose of the talks, it said.
``The 2008 Farm Bill not only runs counter (to) the long-term process of reform in agriculture,'' it said, adding that it intensifies competition between rich nations and farmers in poor developing countries.
``The unfair competition brought by subsidies hinders the process of market liberalization by developed and developing countries alike,'' it said.
``The US position has been clear, the Farm Bill is not our Doha offer,'' said Sean Spicer, spokesman for the U.S. Trade Representative.
Trade officials present at the meeting said the U.S. delegation said if it becomes necessary to amend the bill once the trade talks are concluded, the administration of President George W. Bush would work with Congress to bring it in line with the new agreement.
Lamy told EU parliamentarians last week in Brussels that the ``farm bill is not sending a great signal that the U.S. are serious about reducing their subsidies.''
The talks are aimed at boosting international trade, but trade battles between rich Western countries and developing nations have held up a deal.
Other countries say they are looking to the United States _ as well as the European Union _ to slash agricultural subsidies before they take big steps to open their own markets.
The U.S. administration has been pushing for a breakthrough in the trade talks, but the passage of the new farm bill signals that reduction in U.S. subsidies will be difficult to achieve.
The group of emerging economies said it ``urges the USA to show leadership in the multilateral process of agriculture reform by committing to substantial and effective cuts in subsidies and to renew its purpose to conclude the Doha Round.'' (Copyright 2008 by The Associated Press. All Rights Reserved.)
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