Main issues at the G8 summit

CLIMATE CHANGE

The issue: The G8 will be looking for progress to tackle global warming after Kyoto expires in 2012. It will need to reverse the rise in carbon emissions in the Northern Hemisphere and reduce reliance on fossil fuels.

The likely sticking points: The US favours investment in nuclear and new technologies. Other countries see the need for further curbs on carbon emissions twinned with clean technology, including wind power.

The likely outcome: France, Germany, Britain and Russia are confident of a breakthrough but United States President George W. Bush says he will not support a new Kyoto-style agreement. The G8 may have to settle on a "talking shop" forum for industrialised countries.


TRADE

The issue: Helping African nations to trade out of poverty will be an important issue. Trade barriers are blocking African goods, and farm subsidies in the US and European Union make it difficult for Third World farmers to compete.

The likely sticking points: The US says it will scrap subsidies for its farmers if the EU does this first. Since French President Jacques Chirac has in effect blocked movement on CAP reform, an impasse is on the cards. British Prime Minister Tony Blair called last week for the CAP to be abolished.

The likely outcome: Wholesale scrapping of trade barriers or farmers' subsidies in the West is a practical impossibility. But there may be some progress, and possibly an establishment of new targets to help African farmers.


DEBT RELIEF

The issue: African nations are strangled by 170 billion ($441 billion) of debt incurred by previous regimes. Campaigners want the debt cancelled to enable Governments to invest in their countries, rather than pay interest.

The likely sticking points: British Chancellor Gordon Brown says he has already secured a 25 billion deal to write off debt for the poorest African countries, and is after a deal to wipe out debt for other countries. Bush will not support such an aid deal.

The likely outcome: A deal is likely to be struck but some Third World charities will be disappointed unless at least 62 poor countries, instead of 19, benefit from debt relief.


AID

The issue: A massive aid package for African nations is a key demand of anti-poverty campaigners, bolstered by the Live8 concert. They want US$50 billion of new aid to poor countries immediately - including Africa.

The likely sticking points: Rich countries are reluctant to provide extra cash without guarantees aid will not disappear into the coffers of corrupt regimes. Britain is convinced of the case for more aid but the US is less so.

The likely outcome: Expected to commit US$25 billion in aid to Africa over five years, less than 0.01 per cent of the combined economic wealth of the richest donors. Oxfam said 55 million children could die if the money was not made available immediately.


OTHER ISSUES

* Record oil prices will be discussed within the context of the health of the global economy.

* China has said it is yet to be decided whether reform of its currency regime will be discussed. The US and other capitals have pressured Beijing to let the yuan float freely.

* Japan says it will raise the issue of North Korea's nuclear arms development. At a meeting in London last month, G8 foreign ministers urged North Korea to return promptly to six-party talks.

* British Prime Minister Tony Blair has said he wants agreement on a "package of support" to raise Palestinian living standards ahead of the planned withdrawal next month of Israeli troops and settlers from Gaza.

* On Zimbabwe, the ministers called on the Mugabe regime to abide by the rule of law and respect for human rights after a crackdown which has left hundreds of thousands destitute.

* Meeting before a surprise presidential election win by hardliner Mahmoud Ahmadinejad, the foreign ministers also backed efforts by France, Germany and Britain to negotiate long-term arrangements for Iran's nuclear programme and expressed concern about Iran's attitude towards terrorism.

* They "deplored the series of political assassinations that have taken place" in Lebanon and called on Syria to contribute actively to regional security and stability.

- INDEPENDENT, REUTERS