Kenya seeks curbs on farm subsidies

Kenya has renewed its call for a reduction of domestic subsidies on agriculture in developed countries that have restricted access of exports to their markets.
The other area of concern for Kenya is the elimination of subsidies to support exports that compete unfavourably with those from developing countries.

According to Kenya's World Trade Organisation (WTO) position paper, developing countries have been sidelined in the deliberations on world trade such that negotiations have centred on matters mainly concerning the European Union and the US.

"Many developing countries are concerned at this state of the negotiations, as it marginalises the issues of interest to them as well as their involvement in the negotiation process," the paper said.

In a press briefing yesterday, Permanent Secretary in the ministry of Trade and Industry David Nalo said the Kenyan delegation for the meeting, set to begin on December 13, would be led by the minister who is expected to have been appointed in the ministry by then. Some countries including the US had put forward a proposal to cut overall trade distorting support (domestic and export subsidies) by over $60 billion by between 75 and 80 per cent.

Kenya wants provisions at the WTO allowing emergency and humanitarian aid to be maintained. Developing countries have high tariffs than the developed ones and hence the impact of a tariff reduction is higher on their economies.~ Kenya would like the developed countries to open their markets further so that it can export more to their markets. This would involve reduction of subsidies in the developed countries.

Meanwhile, experts say a task force should be formed to smoothen trade across borders under WTO rules. The task force will then become the reference point for all trade-related laws and bodies that are currently scattered in various ministries, says Mr Felix Okatch, a former marketing manager at the National Bank of Kenya and now a multilateral trade consultant.

This is seen as important because information sharing among government departments on the issue of smooth passage of goods across borders has limited the flow of trade among countries.

Elsewhere, the civil society has called upon the Government to ensure that forth coming World Trade Organisation (WTO) Ministerial in Hong Kong address development issues.~ They have highlighted agriculture subsidies and market liberalisation as the core issues that government representatives should focus on, saying the two pose the greatest challenge to the developing countries.

"If Hong Kong will be beneficial to African countries, developing countries must be allowed to choose the rate and pace of their liberalisation process according to their development needs, and the rich countries must finally live up to their promises," they said in a joint media statement yesterday.

Ms Elizabeth Mueni of Oxfam said: "We have not yet seen any real reduction in the support to their farmers, nor any steps towards elimination of their export subsidies. These practises keep destroying millions of farmer