U.S.-EU alliance in farm trade talks forcing Japan into corner

GENEVA, July 24 Kyodo - The United States has taken sides with the European Union on its proposal to limit to 4 percent farm products to be exempted from high tariff cuts at the free trade talks under the World Trade Organization, negotiation sources saidThursday.

The move, which has emerged as about 30 WTO member economies are haggling to clinch an outline deal for the Doha Round trade talks in Geneva, is apparently forcing Japan into a corner in the farm trade liberalization talks.

The 4 percent exemption target for all agricultural products is a tough request for Japan as it is now struggling to achieve an 8 percent exemption target to protect its ''sensitive'' farm products such as rice.

The latest text for the WTO farm negotiations states that 4-6 percent of all farm products will be exempted from substantial tariff cuts.

According to the sources, the European Union made the proposal during a meeting of seven major trading powers held through early Thursday.

A row between developed and developing countries over freeing up farm trade is one of the major obstacles to the conclusion of the ongoing Doha Round talks, along with strife over market access for nonfarm products.

Tokyo had long argued that its so-called ''sensitive products'' including rice, sugar and wheat should account for more than 10 percent of total farm products.

But Masatoshi Wakabayashi, Japan's agriculture, forestry and fisheries minister, made a concession last weekend by lowering the exemption target to 8 percent prior to the start of the ministerial Doha Round talks in Geneva.

His offer drew sharp criticism from domestic farm groups.

Accepting the 4 percent exemption target is expected to hurt somehighly-protected domestic agricultural sectors in Japan.

The other items protected by Tokyo with high tariffs include butter, peanuts and pork.