International trade talks in Cancún have begun in earnest with the European Union demanding that poor countries open their markets more thoroughly to goods from the developed world. Mr Herve Jouanjean, one of the EU's chief negotiators at the World Trade Organisation, said the trade talks had to benefit everyone if they were to be successful.
"These negotiations are about mutual concessions. They are about benefits for all members. Sometimes we've had the impression that developed countries have to do everything. This is not what these negotiations are about," he said.
The EU made clear that it would not agree to eliminate export subsidies for agricultural products, despite a commitment made in Doha two years ago "to reduce with a view to phasing out" such subsidies. Mr Gregor Kreuzhuber, a spokesman for the Agriculture Commissioner, Dr Franz Fischler, said the EU was prepared to eliminate export subsidies on some but not all agricultural products. "With a view to phasing out does not mean phasing out. It does not mean elimination," he said.
Developing countries have been strengthened by the formation of a group of developing countries called the G-21, led by Brazil, India and China, which have agreed to negotiate as a block. Until now, WTO talks have been dominated by the EU, the US, Japan and the Cairns Group of large agricultural exporters led by Canada and Australia.
Developing countries have complained in the past that they have been left out of backstairs WTO deals agreed by the wealthy groups. It will be impossible this week to ignore the G-21, which represents more than half of the world's population.
The EU and the US complain that the G-21's demands are unrealistic and that they demand sacrifices from the developed world without reciprocal action.
Brazil's foreign minister, Mr Celso Amorin, insisted yesterday, however, that the G-21 proposal was balanced and fair and that reform of the agriculture subsidy system was essential if trade is to become fair.
The EU and the US have reacted cautiously to a call by four African countries for the abolition of subsidies on cotton, which they say is costing them $250 million each year in lost income. Benin, Burkina Faso, Chad and Mali say that their farmers cannot export their cotton because of heavily subsidised European and American cotton exports. Mr Peter Allgeier, deputy US trade representative, insisted that his government's support for US cotton farmers was within WTO rules but he said he would consider the African initiative.
The EU Trade Commissioner, Mr Pascal Lamy, said that, because European cotton production represented only 2 per cent of that of the world, the €700 million the EU gives to Greek and Spanish cotton producers had little effect on world prices.
