This is Bob Doughty with the VOA Special English EconomicsReport.

Rich and poor nations have produced a new set of trade agreementsat the World Trade Organization. The main issue for many developingcountries was government support for farmers. Developing nations sayrich nations give support called subsidies to farmers. They say thisdrives down the price of agricultural goods.

Now, WTO members including Brazil, the European Union, Japan andthe United States have agreed to reduce subsidies.

The WTO General Council met last week in Geneva, Switzerland, tonegotiate what is called the Doha Round of trade talks. This seriesof talks deals with more than forty trade issues in twelve areas.

Members agreed to cut agricultural subsidies by twenty percent inthe first year of the agreement. Export subsidies are to becompletely ended in the future.

Special consideration is given to developing countries. Someproducts are recognized as more important than others to a nation'seconomy.

The agreement notes the importance of cotton to developingcountries. It says cotton trade will be dealt with in a differentway from other agricultural issues.

The agreement also calls for the highest import taxes onagricultural goods to be cut by the largest amount.

In a victory for many developing countries, members voted not todeal with three of four so-called Singapore issues. These are tradeissues that industrial nations wanted to negotiate as a group inthis series of talks. They include easing trade restrictions,investment, competition policy and policies on how governments buygoods. Now, members will only negotiate easing trade restrictions inthe Doha Round.

Industrial countries also received something in the agreement.Members agreed to create a system for cutting import taxes onindustrial goods over time. They also agreed to negotiate decreasingor ending some import taxes.

Members agreed to provide a plan on how they can open theireconomies to service industries. Each nation must create a plan byMay, two thousand five. WTO members also agreed not to ban foreigncompanies from any service industry. And they agreed to make iteasier for their citizens to work in other countries.

The WTO General Council plans to meet again in October.

This VOA Special English Economics Report was written by MarioRitter. This is Bob Doughty.