Trade Ministers overcome key hurdle to trade talks

World Trade Organisation talks moved one step back from the brink of collapse this week after trade ministers from rich and poor nations reached a deal on a key sticking point.

At a meeting of 30 WTO member states in Paris, trade ministers agreed to a tariff structure for agricultural produce, paving the way for export subsidies to be cut.

Developing countries argue that their agricultural products cannot compete on the global market against heavily subsidised produce from the European Union and the United States.

Excess produce is often dumped on poorer nations further pushing down prices and they are demanding greater access to the markets of richer nations through a reduction in import tariffs.

Under the agreement, agricultural tariffs can be converted into a percentage sum rather than being calculated by a flat rate of dollars or euros per tonne.

Global trade talks in Cancun, two years ago, collapsed over disagreement over tariffs and farming subsidies, and trade ministers hope this deal will pave the way for talks in Hong Kong later this year.

Jennifer Macey reports.