Hongkong Round: Farm Subsidies

As predicted, farm subsidies will be the main sticking point.

From the CBC, Rich, poor countries at stalemate over farm trade as WTO meets in Hong Kong:

Meanwhile, the WTO meeting opened with rich and poor countries still at odds over agricultural trade, the major sticking point that has held up world trade negotiations for months.

The deadlock threatens to undermine - or even derail - the six-day Hong Kong meeting, which was originally meant to lay the groundwork for a global treaty by the end of 2006 that would cut trade barriers across a wide array of sectors, from agriculture to services.

Developing nations accuse the United States, European Union and other rich countries of not cutting agricultural tariffs and farm subsidies enough, keeping out exports from poorer nations.

From Reuters: Food aid fight darkens mood as WTO talks open

The EU, in particular, has faced huge pressure to make deeper cuts in agriculture tariffs than the average 39 percent it has offered. But it has refused to budge without balancing pledges from developing states to open their markets to industrial goods.

"The European Union will not make a new offer," said French Trade Minister Christine Lagarde, whose country has been widely criticised for its determination to protect French farmers.