European Commission Maligns Poor Countries' Demands for Cuts in Massive Farm Subsidies

Brussels/Geneva, September 5 (RHC)

The European Commission launched a ferocious attack on poor countries and development campaigners when Thursday it dismissed calls for big cuts in Europe's massive farm subsidies, calling the demands "extreme" and "couched in cheap propaganda". In a move that further threatens the success of next week's trade talks in Cancun, Mexico, Franz Fischler, the EU agriculture commissioner, said Brussels would strongly defend its farmers.

Fischler's comments came as British Trade Secretary Patricia Hewitt warned that failure at Cancun would be "disastrous for the global economy" and a severe setback in the fight against terrorism and poverty. Hewitt said "rich countries can't preach free trade abroad and have protectionism at home," adding that there is "a danger of locking developing countries into poverty because we lock them out of our markets." Her comments came on the heels of a World Bank warning that the Cancun meeting will fail without substantial moves by rich nations.

Nicolas Stern, chief World Bank economist, said Wednesday: "They are the dominant players and account for two-thirds of the global market." The lending institution, along with the Washington-based Committee for Economic Development and other organizations, say the onus lies almost entirely on the United States and other rich nations to lead the way and stop practices that have crippled small farmers and businesses around the world.