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A EU Warning to Brazil and G20: Open Your Markets If You Want End to Subsidies

No agreement can be reached in agriculture in the WTO (World Trade Organization) talks if emerging countries, particularly from Latinamerica, don’t open their markets to industrial goods and services, said European Union Trade Commissionaire Peter Mandelson, on Friday, October 14.

"If such opening for industrial goods and services does not happen, let me be perfectly clear there will be no such thing for agriculture. It’s simply not feasible," underlined Mr. Mandelson in a release which was distributed in Brussels.

The statement was in reply to the latest G20 (Group of developing countries which includes Brazil, India, Argentina, among others) proposal to the United States, the European Union and Japan for the dismantling of domestic support to farmers and opening markets to agriculture produce so as to promote competition from emerging countries and help unlock WTO Doha round trade talks.

Earlier in the week in Geneva the G20 proposed strong cuts to rich countries domestic farm subsidies: 80% when they amount to over US$ 60 billion; 75% for those between US$ 10 billion and US$ 60 billion and less that US$ 10 billion, 70% reduction.

As to market access, the G20 natios suggested a minimum 54% cut in import tariffs, while developing countries would be exposed to a maximum 36% tariff cut.

Last Monday the US and EU had come forward with less restrictive initiatives, but Mr. Mandelson also warned that regarding agriculture "EU and US can’t carry the full burden by them only".

"We can’t offer greater prospects in agriculture for the Latinamerican competitive farmers if in exchange markets in which we are looking for greater access are not opened," insisted Mr. Mandelson.

Mercopress – www.mercopress.com


  • Show Comments (3)

  • Guest

    …if Brazil….
    …would eliminate their export tax on agriculture…they would become…by definition….. more competitive !!!!!!!!

    Being more competitive would allow for higher investments, lower costs, more jobs, more exports, lower inflation, better wages, better social inclusion, better consuming power !!!!!

    The disadvantage of lower tax collection with the elimination of export tax…will be more than offset with the above advantage. Because the advantages will generate a dynamism in the economy and this would generate more taxes than those eliminated. But you need to have a much better tax collection rate….as tax evasion is the name of the game…in Brazil !!!!.
    And tax evasion by itself reduce government budget….restricting them for social investments.
    Same for pirated software, goods, etc etc !!!!!!

  • Guest

    Brazil, Brazil…….
    ….they just wont to take and give….nothing or at best….very little, as usual !
    ….they mix up WTO with WAO….which does not even exist. WAO being for World
    Agriculture Organization.
    …they want big cut in our agriculture subsidies….but find normal to subsidize their own agriculture….and on top…. put a 23 %
    export tax !!!!!
    …they do not recognize international patents and intelectual property rights. They dont want to pay for the billions and billions spent for HIV drug, threatening to pirate the drug.
    Same for software…!!!!!!
    …By being not serious against the piracy of faked, pirated goods, they also loss the revenues of the taxes that would have been collected. That makes a double whammy…to the reduced street prices of pirated goods. Despite this big advantage…they are still not competitive in the productivity due to red tape, bribery and corruptions….from the lowest to the highest levels…in the economy, political circles and even….government !!!!
    ….By all ratings they have the highest interest rates even when their inflation is not that high. They have one of the highest tax rate, highest bureaucracy.
    ….They are one the worst for social inclusion, education, wealth inequalities, infrastructure.
    …they borrow money in international markets when things are bad because of their own mismanagement and when things are better….they are reluctant to repay….using demagogy tricks to have us accept a cancellation of the loans we made to them.
    ….Lula and his government allocate big budgets increases to social, education, health, infrastructure programs which are very good.
    Especially for their popularity…as these increase are widely proclaimed and published….eveywhere. But then without much fanfare…they reduce….reduce…reduce….these budgets because of fiscal asuterity and budget constraints ! Are they not able to figure out a budget and stick with it….especially when it involves basic education, health, social programs ! Dont they have good accountants…who could simply add and substract simple numbers !!!!!

    ….As to your cattle disease, your government is still trying to find out the reason why it came back after having been eradicated….as they said….not longer than a year ago !!!!!!!

    Welll….wellll…..the reason is quite simple :
    they have simply not freed the budget allocated to the vaccination of animals….that was voted and approved for !!!!! You have a confirmation of my statements in one article of…..Brazzilmag !!!!


  • Guest

    Yes, Brazil needs to open its markets
    Some of the import duties imposed by Brazil are absolutely ridiculous. For lots of electronics categories, they don’t even have domestic industries to protect. I am getting so sick of being asked to bring computers, digital cameras, clothing items etc to my friends in Brazil just because the Brazilan gvt makes these items unaffordable for its citizens.

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