The United States and European Union (EU) failed to bridge their differences over the tariff and subsidy issues, including aid for food programme
The US Trade Representative to the WTO, Rob Portman, in his opening statement at the WTO plenary session said that a new agreement on agriculture had to be central to any new global free trade deal being achieved, adding that he believed that there was only one way to break the current deadlock in agriculture and that was reduction in tariff in the relatively protected agriculture.
"Although we may not achieve all we have hope, let us set another deadline to keep pressure on. We should set a new deadline for tabling a revised and improved offer in services."
The EU Trade Commissioner, Peter Mandelson, retorted that a "policy of brinkmanship and bidding up is standing in the way" of agreement being reached in Hong Kong.
The EU''s refusal to make more cuts to farm subsidies and tariffs is blamed by some for the impasse at the talks.
The US was demanding that there should be a separate agreement on cotton while the European Union and other countries, like Pakistan, were of the view that it was already the part of agreement signed in July 2004.
The EU has different viewpoint as Trade Commissioner said: "Let''s engage on agriculture but let''s also engage across the board" as a deal on immediate subsidy cuts was "not possible". He also said that a deal on immediate subsidy cuts was not possible.
Mandleson was also reported to be saying that the food which was being given to the poor and famine-stricken countries should be procured from the local markets, but the US was of the view that it would increase prices in the local markets.
Andrew Natsois, Deputy US Trade Representative, while briefing the journalists said that US had not enough food to deal with emergency relief operations, so there was a need to devise a comprehensive strategy in this regard.
Rob Portman announced that the US plans to increase its contributions to global aid for trade from $1.3 billion in 2005 to $2.7 billion in grants annually by 2010.
Replying to question, he said that hardly 10 percent food aid was being provided to those Iraqis who were badly affected due current situation.
Answering a question, Karan Bhatia, one of US officials, said that G-20 has come forward with constructive proposals and the US was waiting for other constructive suggestions from other countries to reach any final deal.
They also criticised all EU stance on food for aid programme, adding that it was not understandable why the EU took position on this issue.
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