Africa wants deadline on farm subsidies

LONDON – African leaders will demand a timetable for ending agricultural subsidies at a meeting with heads of G8 this week.

Both South African President Thabo Mbeki, speaking at an African Union summit in Libya, and his finance minister, speaking in London, urged action on the subsidies. “The … matter that is a very important is a decision on when they are going to move on this issue of agricultural subsidies,” Mbeki said.”We want a commitment from them in principle on when these agricultural subsidies will end.”African countries argue that subsidies to European and American farmers make their own produce far too expensive, effectively pricing them out of crucial markets.”If what we have in (Africa) is a propensity for agricultural output and you deny us access to your markets by virtue of subsidies then you are disadvantaging us in perpetuity, so a timetable is a very important part,” SA Finance Minister Trevor Manuel said.Mbeki said subsidies would be on the agenda of negotiations of the WTO but a commitment could be integrated in WTO negotiations.Manuel also said Africa needed to study further the US$40 billion (N$272 billion) in debt relief for impoverished nations agreed by the G8 in June.”The big number US$40 billion is on the table.I think we have to take what is on the table, work with this and then identify where the gaps and omissions are.We can’t convince them of more.We can’t hold out for more,” he said.Manuel said it would be necessary to have a small fund available to economies that would face an economic shock when markets are liberalised but that it would be rules-based and short-term to tide them over.Manuel said manufacturing gains are unlikely for Africa given the “shadow from China”, leaving growth in agriculture as a key element for lifting much of the continent out of poverty.He predicted Africa overall would have economic growth in the five per cent range in 2005 while South Africa, a big contributor to the continent will grow by about four per cent.Agricultural subsidies given by the developed world to its farmers have been targeted as a major reason for keeping African producers shut out from the world market and a major reason for the lack of sustainable economic development.- Nampa-Reuters”The … matter that is a very important is a decision on when they are going to move on this issue of agricultural subsidies,” Mbeki said.”We want a commitment from them in principle on when these agricultural subsidies will end.”African countries argue that subsidies to European and American farmers make their own produce far too expensive, effectively pricing them out of crucial markets.”If what we have in (Africa) is a propensity for agricultural output and you deny us access to your markets by virtue of subsidies then you are disadvantaging us in perpetuity, so a timetable is a very important part,” SA Finance Minister Trevor Manuel said.Mbeki said subsidies would be on the agenda of negotiations of the WTO but a commitment could be integrated in WTO negotiations.Manuel also said Africa needed to study further the US$40 billion (N$272 billion) in debt relief for impoverished nations agreed by the G8 in June.”The big number US$40 billion is on the table.I think we have to take what is on the table, work with this and then identify where the gaps and omissions are.We can’t convince them of more.We can’t hold out for more,” he said.Manuel said it would be necessary to have a small fund available to economies that would face an economic shock when markets are liberalised but that it would be rules-based and short-term to tide them over.Manuel said manufacturing gains are unlikely for Africa given the “shadow from China”, leaving growth in agriculture as a key element for lifting much of the continent out of poverty.He predicted Africa overall would have economic growth in the five per cent range in 2005 while South Africa, a big contributor to the continent will grow by about four per cent.Agricultural subsidies given by the developed world to its farmers have been targeted as a major reason for keeping African producers shut out from the world market and a major reason for the lack of sustainable economic development.- Nampa-Reuters