New World Blogger

Two weeks ago the World Trade Organization ruled in favour of Brazil against US subsidies of agricultural products. This was a landmark decision where for the first time a third world nation successfully challenged a first world country.

Now, Europe has offered to eliminate its agricultural export subsidies. Europe has been one of the most obstinant opponents to the end of subsidization, leaving many third world countries angered that they had to comply with rules that first world countries did not. So there is hope...

Financial Times:

The European Union will on Monday offer to eliminate its agricultural export subsidies and soften its demands for controversial new trade rules in an attempt to revive progress in the Doha world-trade round.


The offer, in a letter to trade ministers from all 148 World Trade Organisation members, is intended to show that the EU is committed to pushing ahead with the stalled round and is willing to take a more flexible stance.

Signed by Pascal Lamy, EU trade commissioner, and Franz Fischler, agriculture commissioner, the letter comes before important meetings of trade ministers in Paris this week, at which renewed efforts will be made to agree by July a negotiating framework for the round.