12/20/05 Details lacking on export subsidy deal

Farm and Ranch December 20, 2005 There were no major break throughs at the WTO talks in Hong Kong which concluded over the weekend but there was an agreement on a date to end export subsidies by. The U.S. had initially hoped to end them by the year 2010. The date agreed upon in Hong Kong was 2013. U.S. Agriculture Secretary Mike Johanns this was no small step. He says the details have yet to be worked out but export subsidies also covers monopolistic trading enterprises like the Canadian and Australian wheat boards. Johanns: "We still have state trading enterprises not only in the discussion, but we feel very strongly and we said in Hong Kong that we feel they in and of themselves are trading distorting. So we will continue to work on that issue and negotiate on that issue, but they are a part of the 2013 deadline. Now we will get down to the specifics of what that will mean." Johanns says there was also agreement in Hong Kong on reforms to eliminate trade distorting effects of food aid. Johanns: "But continue to allow donors to have the flexibility to meet emergency situations and chronic hunger. Need for food aid has never been greater. We recognize that and we fought for food aid while we were at the Hong Kong Ministerial." Agreements on these issues will mean nothing without an overall agreement in the Doha Round and efforts to reach one will continue in 2006. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.