A powerful block of 20 developing countries demanded on Saturday that rich nations scrap all trade-distorting subsidies for farm goods within five years. The two-day G-20 ministerial meeting in the Indian capital agreed a negotiating position before December?s crucial Hong Kong Ministerial Conference of the World Trade Organisation (WTO).

?We have called for substantial reductions in subsidies given by rich countries to their farmers?, Brazilian foreign and trade minister Celso Amorim, the chairman of the G-20, told a press conference at the end of the meeting. ?Farm subsidies are the most harmful single piece of commerce that has to be eliminated within five years?, he added. Developing nations blame the subsidies for artificially driving down prices, making their own produce uncompetitive or diminishing the value of one of their few potential export-earners.

The US, EU and Japan are under pressure to cut the tariffs and subsidies that protect their farmers. They have made offers but developing countries do not think they go far enough. The 25-member EU, which gives the most generous breaks to its farmers, offered last July to phase out the practice but did not set a deadline. Oxfam, a charity campaigning against subsidies, has estimated that the United States paid 3.2 billion dollars a year in cotton subsidies and spent 1.6 billion dollars on export credits for several goods.

?This waffling on subsidies must end. The EU and US cannot offer us postdated cheques. They have to eliminate export subsidies as fast as possible and no later than five years?, said Indian Trade Minister Kamal Nath who is co-ordinator for the G-20.

?Rich countries have to be sensitive to our concerns about food security. India and China have a great deal at stake where agriculture is concerned as our people depend on it?, said China?s Junior Trade Minister Yi Xiaozhun. ?There can be no sellout on this issue.?

India, Brazil, China, Argentina and 16 other developing countries banded together to form the G-20 (group of 20 nations) at a failed WTO meeting in Cancun to press rich nations to slash farm subsidies.

The G-20 is made up of Argentina, Brazil, China, India, Pakistan, Bolivia, Chile, Cuba, Egypt, Guatemala, Indonesia, Mexico, Nigeria, Paraguay, the Philippines, South Africa, Tanzania, Thailand, Venezuela and Zimbabwe. The G-20 ministerial in the Indian capital saw Uruguay sign up as a new member. Celine Charveriat, Oxfam?s head of advocacy, said the G-20?s strong solidarity would put more pressure on developed countries before the Hong Kong WTO ministerial.

?I think rich countries will have to respect the rights of developing countries to protect their poor farmers?, she added. Despite the united stand, differences exist on issues such as how much preferential market access to grant the poorest countries. The G-20 declaration in New Delhi sidestepped the issue of how much members should open up their own markets to industrial goods and services. ?Of course there are nuances but the beauty of the G-20 is unity in diversity. We all recognise that we may have differences in other areas but this does not prevent us from staying united in our battle to end subsidies?, said Brazil?s trade minister Amorim.