06/29/06 WTO Talks Crucial

WTO talks crucial. I'm Greg Martin with today's Line On Agriculture. The time frame for completing the current round of trade negotiations is getting tight. SCHWAB: We made it clear last fall that our proposal was not a take it or leave it offer. However it was contingent on receiving meaningful offers from our trading partners. JOHANNS: We are at a very, very critical stage in the Doha Round. That's U.S. Trade Representative Susan Schwab and Ag Secretary Mike Johanns at the WTO talks this week in Geneva. They are urging forward movement in the negotiations. Schwab told reporters that the focus will be on farm trading and manufacturing. SCHWAB: And without that breakthrough it will be hard to get to some of the other issues. So we're dealing with a time frame now that clearly takes us through the end of July that would enable us in that time period we hope to wrap up the critical points and then you get into the fall specific exchanges and verification of schedules and so on. A new WTO trade agreement will mean changes in U. S. farm programs as Schwab tells us. SCHWAB: The agricultural portion of the offer we put on the table in the fall would require on domestic support significant changes in our farm programs and that has implications for amber box, blue box, dominimus and green box. The different colored boxes that Schwab describes refer to what is allowed and not allowed when it comes to farm programs. Ag Secretary Johanns totally agreed with Schwab. JOHANNS: We should be doing more green box programs. Whether it's rural development or environmental programs because they serve a world purpose. They're very, very positive, they're not trade distorting. For me, I can embrace. I think it makes a lot of sense. At this point in the WTO process there has been a general recognition that green box programs are appropriate. There has been a willingness to talk about some disciplines but again the argument I would make is that worldwide we should be doing more green box programs, not less. American Farm Bureau President Bob Stallman explains what's at stake for U.S. agriculture in current WTO negotiations. STALLMAN: Having a failed negotiation is not good for U.S. agriculture because U.S. agriculture is highly dependant on exports of our agricultural products. About one third of our products are exported. So we need to have access to these other markets but on the other hand we should not be giving up something in the way of our domestic supports or our farm programs and not get something in return for it and that's the situation as it exists now. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.