Fed: More cuts in farm sector protection needed: NFF

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Fed: More cuts in farm sector protection needed: NFF

CANBERRA, Aug 14 AAP - There would have to be major cuts in farm subsidies before Australianfarmers would agree to a new world trade deal, the National Farmers' Federation said today.

Federation president Peter Corish said Europe still had a long way to go on its offerfor a reduction in farm tariffs and protection before agricultural nations such as Australiacould agree.

Overnight, the European Union and the United States agreed on a sketchy plan to openfarm trade as part of the World Trade Organisation round of negotiations.

Unlike previous demands, this proposal does not specifically demand an end to the subsidiespaid to help farmers sell particular products.

That is a key demand from Australia and other members of the Cairns group of free-tradingagricultural nations.

Payments to farmers would also be made based on the total area they farmed, ratherthan what they produced.

Mr Corish said the federation did not have concerns that the US and EU were negotiatingtogether, as the Cairns group had a presence at the talks.

But any deal would have to cut domestic subsidies as well as improve market access for exporters.

"Out of the round we have to see substantial movement, positive movement in terms ofmarket access," he told AAP.

"We've got to see a commitment to the eventual elimination of all domestic subsidies,and export enhancement programs.

"We've got to very strongly maintain that position as long as possible."

Mr Corish said the proposal for agriculture changes, proposed by the WTO's head offarm tariff negotiations Stuart Harbinson, did not go nearly far enough.

"That is something that both the Cairns group, Australia and the US want significantmovement on," he said.

"For the round to be successful we have to see a major change in attitude from the Europeans."

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KEYWORD: WTO AUST