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The head of the World Trade Organisation (WTO) said that he hoped the two sides could agree agricultural reforms before the deadline of March 31. But most analysts said that agreements seemed unlikely after three days of talks in Tokyo achieved little solid progress on the issue.
Europe and Japan remain resolutely opposed to the radical cuts in farm tariffs and subsidies proposed by the US.
Tokyo said its support for the rice industry — protected by tariffs of up to 490 per cent — was non-negotiable, a position attacked by the US. Robert Zoellick, US trade representative, said: “In our view they are sacrificing Japan’s strengths on the altar of rice.”
Europe said the US proposals for change were too heavily weighted in favour of large exporters and opposed a draft WTO plan calling for an average cut of 60 per cent in import tariffs on farm goods. Mr Zoellick said the round of trade liberalisation begun in Doha in 2001 depended on whether “a few key capitals in Europe can look over the hedgerows to see the big picture of the world economy”.
The US came in for heavy criticism for continuing to block attempts to promote affordable drugs for the developing world.
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