HONG KONG (AFX) - Financial Secretary Henry Tang said the Hong Kong government supports the eventual elimination of practices and measures which distort global agricultural trade, and will take that stand during the World Trade Organization ministerial meeting to be held here next month.

"Given Hong Kong's free trade policy, we fully support the eventual elimination of trade-distorting and restrictive measures in agricultural trade," he said in reply to questions at the Legislative Council on positions to be taken by Hong Kong at the WTO conference, set for December 13-18.

He said mainland China closely monitors the negotiations at the WTO on agricultural issues because of their potential impact on other matters being tackled under the WTO Doha development agenda.

Tang also said that developing WTO members known as the G-20 are spearheading the move for further liberalization of trade in agriculture.

"They are demanding early elimination of export subsidies, substantial reduction of domestic support measures and meaningful market access through sharp and genuine reduction by developed WTO members, such as the EU, Japan and the US," he said.

Tang spelled out the Hong Kong government's position even as Asian Development Bank president Haruhiko Kuroda warned that Asia's economic growth and exports may be seriously affected if the WTO fails to tear down trade barriers during its forthcoming conference in the terrritory.

The European Union is being pressed by the WTO's developing members into making more concessions on agricultural subsidies.

However, EU Trade Commissioner Peter Mandelson said yesterday that the European bloc did not plan to make a further offer on agriculture before the ministerial meeting in Hong Kong.

Leaders of the 21 members of the Asia-Pacific Economic Cooperation (APEC) forum are currently meeting in Korea to try and pressure the European Union into making more concessions on agricultural subsidies.

jun.concepcion@xfn.com

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