Rich-Poor Rift Triggers Collapse of Trade Talks

Representatives from developing countries walked out of WTO trade talks this weekend in Cancun, claiming that the United States and European Union (EU) countries were unwilling to negotiate the reduction of agricultural subsidies. Many states from Latin America and Africa consider the $3 billion of subsidies provided by wealthier countries to their farmers to be a de facto "dumping" policy, eliminating any chance for poorer nations to compete in the global agricultural market. The "Group of 22" developing countries called for richer nations to abide by their own free trade rhetoric and reduce their subsidies. In turn, the US and EU states demanded that developing nations eliminate trade tariffs and barriers that poorer countries claim are necessary protection for their infant industries. With anti-globalization activists cheering outside the conference halls, trade negotiations broke down and relations across the rich-poor divide remained tense. – YaleGlobal