SYDNEY (AFP) — Australia called Tuesday on the United States to send a "powerful signal" on cutting farm subsidies to break a six-year deadlock in talks on freeing up global trade.
Australian Trade Minister Warren Truss issued the call after meeting with US Trade Representative Susan Schwab ahead of a summit of 21 Asia-Pacific economies that make up nearly 50 percent of world trade.
Truss, who also separately met with other regional counterparts, said a US farm bill that will be considered by the Democrat-dominated US Congress in the next few months was a concern.
His comments came as World Trade Organisation (WTO) envoys meet in Geneva over the next three weeks in a bid to break the long-standing deadlock in the so-called Doha round of negotiations on cutting tariffs and subsidies.
"Other countries, particularly agricultural producing countries, would like to see the United States make positive steps toward reducing its farm support and that would send a very powerful signal for the rest of the world," Truss told reporters.
"So yes we want the US to take action in relation to farm subisidies both in the context of its current farm bill but also in relation to the Doha round."
Truss said a US farm bill that "increases support or one which maintains some of the existing levels of farm subsidies is an unhelpful signal."
However, he said he was encouraged that Washington "knows that a Doha round would have to involve reductions in US farm support in return for improved market access in other parts of the world."
Truss said it was also important that other countries and trading blocs made corresponding concessions to Washington.
"It's unreasonable to expect one country to do all the heavy lifting.
"The US has got a right to expect that other countries will make appropriate concessions and also address the other non-agricultural market access issues which are important to concluding the round."
Schwab is in Sydney for a meeting of trade ministers of the Asia Pacific Economic Cooperation (APEC) forum ahead of the weekend leaders' summit.
Trading nations have spent the past month mulling over compromise proposals on farm subsidies and import tariffs, a key stumbling block in WTO talks which also encompass global trade in industrial goods and services.
The Doha round, launched in the Qatari capital in 2001, seek to cut import duties and subsidies primarily to help developing countries take advantage of expanding global trade.
WTO members are at odds over the extent of new cuts in barriers to trade in agriculture, industrial goods and services amid cross-cutting disagreements between rich and poor countries over the concessions they need to make.
"Because we represent 50 percent of the world's trade we have a key role to provide impetus and encouragement to the negotiations," Truss said.
"If we demonstrate that we remain politically resolved to achieve a good outcome at Doha then that will certainly fire up the negotiations and ensure people take a constructive view to the tasks ahead."
While "we all know that it will be difficult," he said, "if there is a firm commitment and a vision towards what can be achieved, that outcome is still achievable."
Truss said a raft of bilateral and and other trade deals in various stages of discussion among APEC members were useful "building blocks," but could not constitute a "Plan B" in case the Doha round fails.
Australian Trade Minister Warren Truss issued the call after meeting with US Trade Representative Susan Schwab ahead of a summit of 21 Asia-Pacific economies that make up nearly 50 percent of world trade.
Truss, who also separately met with other regional counterparts, said a US farm bill that will be considered by the Democrat-dominated US Congress in the next few months was a concern.
His comments came as World Trade Organisation (WTO) envoys meet in Geneva over the next three weeks in a bid to break the long-standing deadlock in the so-called Doha round of negotiations on cutting tariffs and subsidies.
"Other countries, particularly agricultural producing countries, would like to see the United States make positive steps toward reducing its farm support and that would send a very powerful signal for the rest of the world," Truss told reporters.
"So yes we want the US to take action in relation to farm subisidies both in the context of its current farm bill but also in relation to the Doha round."
Truss said a US farm bill that "increases support or one which maintains some of the existing levels of farm subsidies is an unhelpful signal."
However, he said he was encouraged that Washington "knows that a Doha round would have to involve reductions in US farm support in return for improved market access in other parts of the world."
Truss said it was also important that other countries and trading blocs made corresponding concessions to Washington.
"It's unreasonable to expect one country to do all the heavy lifting.
"The US has got a right to expect that other countries will make appropriate concessions and also address the other non-agricultural market access issues which are important to concluding the round."
Schwab is in Sydney for a meeting of trade ministers of the Asia Pacific Economic Cooperation (APEC) forum ahead of the weekend leaders' summit.
Trading nations have spent the past month mulling over compromise proposals on farm subsidies and import tariffs, a key stumbling block in WTO talks which also encompass global trade in industrial goods and services.
The Doha round, launched in the Qatari capital in 2001, seek to cut import duties and subsidies primarily to help developing countries take advantage of expanding global trade.
WTO members are at odds over the extent of new cuts in barriers to trade in agriculture, industrial goods and services amid cross-cutting disagreements between rich and poor countries over the concessions they need to make.
"Because we represent 50 percent of the world's trade we have a key role to provide impetus and encouragement to the negotiations," Truss said.
"If we demonstrate that we remain politically resolved to achieve a good outcome at Doha then that will certainly fire up the negotiations and ensure people take a constructive view to the tasks ahead."
While "we all know that it will be difficult," he said, "if there is a firm commitment and a vision towards what can be achieved, that outcome is still achievable."
Truss said a raft of bilateral and and other trade deals in various stages of discussion among APEC members were useful "building blocks," but could not constitute a "Plan B" in case the Doha round fails.
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