WTO food aid row boils over as police clash with protesters

A TRANSATLANTIC row on food aid boiled over and anti-globalisation protesters clashed with police yesterday as troubled trade talks got underway in Hong Kong.

Deadlocked in negotiations for a free trade accord because of differences over cutting subsidies and import tariffs, World Trade Organisation (WTO) states shifted their focus to delivering a package of trade support for developing nations.

But UN chief Kofi Annan told ministers of nearly 150 states that they must make real progress on the Doha trade round at their six-day meeting or disappoint the millions who “yearn to lift themselves out of poverty.”

Tension between the United States and the 25-nation European Union burst into the open as the meeting got under way, with European Trade Commissioner Peter Mandelson calling for “radical reform” to the US system of food aid for developing nations.

Washington sends aid donations in the form of domestic corn, wheat and other commodities, but Brussels says cash is quicker and less likely to affect the delicate balance of local trade.

“Food aid for poor countries and emergency relief can be a tool to advance development and for humanitarian relief,” Mr Mandelson told a news conference. “But the US programme is designed to give support to US agricultural producers.”

He also blasted a UN newspaper advertisement which said that restrictions on donations of food to the UN could take food out of the mouths of hungry children. “I find it shocking that UN agencies should be financing an advert ... that is designed to support US trade-distorting policies on food aid,” he said.

Outside, over 100 protesters leapt into Hong Kong harbour after a march by 4,500 people against trade liberalisation.

The WTO nations still hope to reach a final deal by the end of 2006. But, bogged down over how far to open their farm, services and factory goods markets to more trade, they have given up plans to seal a blueprint in Hong Kong.

The EU, in particular, has faced huge pressure to make deeper cuts in agriculture tariffs than the average 39% it has offered.

But it has refused to budge without balancing pledges from developing states to open their markets to industrial goods.