*EPF511 09/12/2003
Text: Congressional Leaders Express Concern Over Pace of WTO Talks
(U.S. farm subsidy cuts unlikely without foreign concessions, they say) (790)

Two congressional leaders have expressed concern about the progress of negotiations at the World Trade Organization (WTO) ministerial meeting in Cancun, Mexico.

Chairman of the Senate Finance Committee Charles Grassley said September 11 he is disappointed by a counterproposal on agriculture submitted by the Group of 21 (G-21) developing countries.

Grassley, who is not attending the September 10-14 ministerial, said he could not support the position these countries are taking to seek additional cuts in domestic subsidies without opening their own markets to agricultural imports.

Jim Kolbe, the chairman of a House of Representatives Appropriations subcommittee, expressed concern the same day over the lack of progress in talks on a framework for continuing negotiations on reduction of agricultural subsidies and improved market access.

Praising a joint U.S.-European Union (EU) proposal on agriculture, he said the United States is unlikely to make "massive and permanent" reductions in agricultural subsidies without reciprocity by developing nations in the market access area.

Following are the texts of the statements:

(begin text)

SEPTEMBER 11, 2003

Statement of Senator Charles Grassley, Chairman
UNITED STATES SENATE COMMITTEE ON FINANCE

Sen. Chuck Grassley, Chairman of the Committee on Finance, with jurisdiction over international trade, made the following comment on the progress of trade talks in Cancun.

"I'm disappointed by the position of many of the countries in the so-called G-21. These nations, many of which have widely divergent economic goals for their individual nations, seek additional cuts in domestic subsidies but many of them are unwilling to open their own agricultural markets.

"Since the start of these negotiations, the United States has clearly indicated a willingness to eliminate domestic subsidies for agriculture. But success at Cancun is a shared responsibility. It can't be a one-way street whereby the United States agrees to eliminate subsidies but the rest of the world does nothing. As Chairman of the Senate Finance Committee, which has jurisdiction over trade policy in the U.S. Senate, I won't support such a result. We need to see substantial market access for our agricultural products and commitments from other nations, especially the European Union and Brazil, to eliminate agricultural subsidies as well.

"What I find most disturbing is that some of the nations that have aligned themselves with the G-21 position, such as Colombia, El Salvador, Costa Rica, Morocco, Thailand, Egypt, Guatemala, and South Africa, are seeking to deepen their relationship with the United States through the negotiation of free trade agreements, but are resisting opening their own markets in agricultural trade. This makes me question their commitment to free trade and their interest in pursuing the strong market access commitments required to conclude free trade agreements with the United States."

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(begin text)

SEPTEMBER 11, 2003

Statement of Congressman Jim Kolbe
8TH DISTRICT ARIZONA

Kolbe Expresses Concern Over Lack of Progress at WTO Meeting

Cancun, Mexico -- Rep. Kolbe, Chairman of the US House of Representatives Foreign Operations Subcommittee of the Appropriations Committee and a key player in the negotiation and passage of NAFTA [North American Free Trade Agreement], expressed concern today over the lack of progress to agree on a framework for continuing negotiations on reduction of agricultural subsidies and improved market access:

"This is a pivotal moment for the Doha Development Agenda. The United States has put forward a bold initiative for sweeping reductions in agriculture subsidies and a major breakthrough occurred with agreement by the EU to make similar reductions in their subsidies. The extraordinary high subsidies of the EU have been a major stumbling block to any progress in the Doha Round. We must take advantage of this major concession by the EU and reach agreement in the agricultural negotiations.

However, I am concerned about the growing resistance of the G-21 group of developing countries, led by Brazil, to providing reciprocity of market access. The American people and the US Congress simply will not agree to make massive and permanent reductions in subsidies provided to agriculture -- though I firmly believe these reductions must be made -- without some reciprocal action on the part of developing nations. Rhetoric must give way to reality, and the political reality is that American agriculture must have greater access to markets if it is to give up the subsidies it has enjoyed for decades.

I urge all parties to take advantage of the momentum leading up to Cancun by agreeing to a framework that significantly reduces subsidies and simultaneously opens markets. Consumers and producers from all countries will benefit if we agree to make these changes and greater prosperity will be the result for all of our citizens."

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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