Trade ministers battle to break WTO deadlock

HONG KONG - Trade ministers from nearly 150 countries will try to break a deadlock in troubled global talks, amid US and European sniping over farm subsidies, food aid and measures to help the world's poorest.

In a series of meetings which kicked off late on Wednesday, negotiators sought a common ground after the United States urged that a date be set for ending farm export subsidies, used mainly by Europe, while Brussels demanded that Washington first reform its food aid programme.

"It is time for the negotiations to begin in earnest if we want to come away from here with anything," said one Latin American diplomat, who declined to be identified.

The Hong Kong meeting, which opened on Tuesday, was initially intended to approve a draft free trade treaty freeing up business in farm and industrial goods and services.

That plan was abandoned because of differences between rich and developing countries -- particularly the EU's resistance to further cuts in import tariffs on farm goods -- though the 149 WTO nations still hope to reach a deal by the end of 2006.

Reform of rich countries' cotton subsidies, which African nations say is vital to allow them to compete and rebuild their economies, is also on the agenda.

Benin, one of the West African countries which is urging the United States to make immediate concessions on cotton, was understood to have walked out of talks on the issue with the United States.

The United States cancelled a planned morning news briefing and said US Trade Representative Rob Portman would brief the media later in the day on the status of the global trade talks. Portman urged the European Union to work with him on an overall farm reform deal that would give Washington the basis it needs to scrap massive US cotton subsidies.

"It would be irresponsible to the cotton farmers to tell them that subsidies are going to solve their problem," he told delegates.

"If you really want to help, come up with proposals that really do improve market access."

South Korean anti-globalisation protesters, who have clashed with police for the past two days, were expected to try again on Thursday to reach the venue of the convention centre on the waterfront of Hong Kong's scenic harbour.

Riot police have used pepper spray and batons to beat them back and expect more intense confrontations before the meeting closes on Sunday.

But there has so far been no repeat of the violence that marred a 2003 WTO meeting in Cancun, Mexico, where talks on a deal to reform world trade and lift millions out of poverty almost collapsed.

The EU insists that Washington reform its food aid before discussing end-dates for export subsidies. It says food aid benefits US farmers by guaranteeing them a market for their crops and wants all aid to be in cash.

"The EU won't concede on export subsidies unless they get something on food aid," said a source close to the negotiations. "(Although) ultimately Brussels would accept increased disciplines and assurances against commercial displacement."

Top officials have also been trying to thrash out details of a duty-free and quota-free deal for least developed countries to make up for lack of progress in other areas and be able to call the Hong Kong meeting a success.

The United States and the G20 alliance of developing countries led by Brazil and India say farm reform in rich nations is being held up by the EU's refusal to improve its offer on cutting import tariffs.

In the meantime, countries say the EU should at least set a date for an end to farm export subsidies, something to which the bloc has agreed in principle.

That, together with aid for the poorest states and a move on cotton -- where West African states say US subsidies price them out of markets -- should be agreed in the Hong Kong talks, Brazil Foreign Minister Celso Amorim told journalists.

- REUTERS