Portman: No deal likely on farm-subsidies

WASHINGTON -- The United States' top trade envoy said Thursday it's unlikely negotiators will settle a farm-subsidy deadlock at a world trade summit this month.

But U.S. Trade Representative Rob Portman thinks it's still possible to make progress toward an overall trade deal at the gathering of 148 World Trade Organization countries in Hong Kong on Dec. 13-18.

Portman also said the United States is working hard to avoid a watered-down agreement, which would harm the developing countries the summit is meant to help lift out of poverty.

"It's very important right now that we keep our eye on the ball, which is the importance of a broad agreement that really does result in market openings and reduction of trade-distorting support," he told reporters. "By trying to get through Hong Kong with a watered-down agreement, we would be robbing ourselves of this opportunity ... to truly enhance global growth."

The Hong Kong meeting originally was meant to set a framework for cutting obstacles to world trade in agriculture, services and industrial goods. That framework would then guide negotiators as they completed a trade deal by the end of 2006.

While a final framework probably won't be settled, Portman said, WTO negotiators still could make Hong Kong a success by using the meeting to take stock of where they are in the talks and by setting goals on what negotiators must do next year to agree.

Portman spoke with reporters Thursday before traveling to Geneva to meet with trade representatives from India, Brazil, the European Union and Japan - evidence, he said, of the U.S. determination to settle the disputes hampering an overall WTO deal.

"The intention," he said, "is to try to make progress before Hong Kong."

Negotiators from rich countries are stalled on the question of agriculture, specifically how deeply they should cut farm subsidies and high import tariffs that hurt poor countries.

The United States says Europe's policies of generously subsidizing its farmers are the major hurdle in the talks.

EU Trade Commissioner Peter Mandelson said Wednesday that if other negotiators "continue merely to ask for more from Europe, without paying into the pot themselves, they - not we - risk destroying" the current round of negotiations.

Portman said Thursday the EU was blaming poorer countries, many of which already enjoy preferential access to certain markets in the EU and United States, for its inability to liberalize farm trade rules.

"It's sad for me to see the EU, which is the world's largest and wealthiest trade block, hiding behind the least developed countries to explain why the EU cannot open its own market," he said.