EU digs in heels over agricultural subsidies THE BATTLE with the European Union (EU) about its agricultural subsidies continues, with the EU refusing further changes in its current policy before the Doha meeting of the World Trade Organisation (WTO). However, developing countries - including SA - believe that no progress will be made on the Doha agenda before the EU and other developed countries show real reform in agriculture support and protection, according to sources at Deloitte & Touche. “The European Commission delegation in SA indicated that the EU would not make further compromises on agriculture in the Doha world trade negotiations,” FTW was told, “and said that it would continue to support its farmers.” The EU’s counter argument is that it believes it has been moving on the Doha Agenda while developing countries have not. The EU argued that real reform had been introduced in the revised common agriculture policy in June, Deloitte & Touche told FTW. In this, the EU has proposed to reduce customs duties by 36%, export subsidies by 45% and aid by 55%. But developing countries have responded that only the type of subsidisation had changed.
