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UK welcomes 'crucial' trade deal
Patricia Hewitt

Patricia Hewitt has welcomed a new deal aimed at boosting trade with the developing world.

The trade secretary said the latest World Trade Organisation talks were a "crucial step" on the way to a full agreement.

Delegates from 147 countries had been locked in intensive talks in Geneva on a series of framework documents that should eventually pave the wave for a full agreement.

The key sticking point had been agriculture, but a document setting out moves to end export subsidies on farm products and cut import duties was agreed late on Saturday night.

"This is a crucial step on the road to delivering a trade round that will benefit all of us, especially developing countries," said Hewitt.

"I have been in regular contact with a number of WTO members in developed and developing countries in the last few weeks to underline the importance of agreeing a framework.

"An ambitious round is an important prize for the global economy and we must continue to make progress before next year's ministerial meeting in Hong Kong."

The talks formed part of the Doha development round, which was launched in 2001.

It aims to give poorer countries more access to western markets, while cutting back on export subsidies that give farmers from areas such as the European Union and the US a competitive advantage.

The European Commission had been negotiating  on behalf of the UK, with the controversial common agricultural policy proving to be a key sticking point ahead of the deal.

There was a cautious welcome to the agreement from anti-poverty campaigners, however, who said no timetable had been agreed for cutting the subsidies.

"Negotiators may trumpet breakthroughs on export subsidies and cotton but there are no cast-iron commitments here and no clear timeline for reform," said Celine Charveriat of Oxfam.

"We need a far more ambitious and radical approach. If rich countries do not immediately put their promises into action, this declaration will become just one more stage in a long journey of disappointment and deception."

Published: Sun, 1 Aug 2004 15:47:54 GMT+01