OECD says tariff cuts worth $44bn
If levels of global trade tariffs and subsidies are cut in half, it could contribute an extra $44bn (£24bn) to the worldwide

economy, the OECD says.

The Organisation for Economic Cooperation and Development (OECD) said this would result from higher incomes for both

producers and consumers.

Its comments come as nations continue work to agree a new global trade deal at the World Trade Organization (WTO).

Already long delayed, the WTO wants a framework agreed by the end of July.

A final deal is then timetabled to be completed by the end of this year.

If the finished agreement is finally signed off, it is expected to cut global protectionism by between 30% and the 50%, the

level explored in the latest Organisation for Economic Development and Cooperation (OECD) study.

'Efficiency gain'

While the OECD's $44bn estimate includes all sectors of the global economy, its report says the largest part of this gain is

expected to come from agricultural reform.

Paradoxically, while the developed world - notably some European Union member states - has appeared the most unwilling to

reduce farm support and tariffs, the OECD says such Western nations would have most to gain from reduced barriers in the

agricultural sector.

The OECD found that the most efficient agricultural exporters - such as Australia, Brazil, the US and Thailand - would also

gain significantly.

Although all countries will gain overall, the OECD added that for the poorest developing nations, the immediate benefits of

reduced global protectionism would be relatively small, and instead concentrated more in manufacturing than agriculture.

The WTO's current Doha round of trade talks first started in 2001.

Talks stalled last year due to a failure to reach agreement in the agricultural sector.

Although the European Union was singled out for blame by many sides, it countered that the US was also making insufficient

compromises, and called for more access for Western manufactured goods in developing country markets..
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/5064364.stm

Published: 2006/06/09 13:40:35 GMT

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