WTO talks in Nairobi end with breakthrough on farm subsidies

World Trade Organization (WTO) member countries agreed to abolish agricultural export subsidies after five days of talks in Nairobi, but failed to make progress on the long-stalled Doha Round of negotiations aimed at lowering global trade barriers.

The 162-member body, meeting in Africa for the first time, on Dec. 19 said a deal had been reached on the issue of farm export subsidies, with developed nations committing to remove their subsidies immediately and developing nations set to eliminate theirs by 2018.

WTO director general Roberto Azevedo in a statement hailed the agreement as the "most significant outcome on agriculture" in the organization's 20-year history.

U.S. trade representative Michael Froman said the deal would "help level the playing field for American farmers and ranchers."

"The WTO's actions in this area will put an end to some of the most trade distorting subsidies in existence and demonstrates what is possible when the multilateral trading system comes together to solve a problem," he said.

The European Commission also praised the "landmark deal" as "good for fairer global trade."

"For those who had doubts, it proves the relevance of the WTO and its capacity to deliver results," EU Trade Commissioner Cecilia Malmstroem said in a statement.

Doha deadlock

But the conference failed to mend stubborn divisions between poor and rich nations over how to overcome the Doha deadlock and even an additional, unscheduled fifth day of meetings in the Kenyan capital did nothing to end the impasse.    

The final declaration adopted on Dec. 19 said "many members" reaffirmed their "full commitment to conclude" the Doha Development Agenda goals.     

But it added: "Other...