Brazil says US farm bill lacks punch for Doha

Sao Paulo (Brazil), Feb 3: The proposed US farm bill lacks reforms deep enough to successfully finish the Doha round of global trade talks, Brazil's Foreign Ministry said.

Any world trade deal needs the support of Brazil, an agricultural giant and a leader of the G-20 group of developing nations.

''(The bill) is incapable of bringing about the necessary advances for the satisfactory and balanced conclusion of the negotiations,'' Roberto Azevedo, the ministry's general subsecretary for economic affairs, told reporters yesterday.

On Thursday, the European Union also criticized the bill for not cutting subsidies enough.

US domestic farm supports have been a sticking point in the World Trade Organisation talks known as the Doha round.

Developing nations say they distort true global competition.

On Wednesday, US officials unveiled a plan to shield farm subsidies from legal battles, shuffling some of the 87 billion dollars they want to spend over the next decade into programs that they hope will not run foul of WTO rules.

Washington says it can only cut so much until others -- particularly the European Union -- roll back import duties and let its farmers export more.

Officials from leading economies called for a conclusion early this year of the Doha round during a summit last week in Davos, Switzerland.

The talks hit an impasse in July. Rules on farm trade have hampered the round since it was launched in 2001.

Reuters