MONTREAL (Reuters) - As anti-globalization activists prepared for a second day of street protests against an international trade meeting on Tuesday, hopes were dim for a deal that would ease protectionist agricultural policies in the United States and Europe.
More than 200 people were arrested on Monday in a running battle with protesters, some of whom broke shop windows and damaged luxury cars near the hotel where two dozen trade ministers are meeting for three days of trade talks.
Protesters, including some wearing kerchiefs to mask their faces, smashed windows at outlets belonging to retailer Gap Inc., Burger King and the Bank of Montreal. Police said projectiles hurled at police, parked cars and shops included golf balls and steel ball bearings.
Activists gathering at a downtown square said they would begin a second march toward the meeting venue mid-morning on Tuesday.
Meanwhile, at the ministers' meeting inside the hotel cordoned off by a police security perimeter, New Zealand Trade Minister Jim Sutton said optimism already was beginning to fade for a result that would move trade talks forward.
"Not anything that's been said by the EU or Japan or the great protectionists on agriculture here has given us much ground for optimism so far," Sutton told Reuters.
The United States and the EU are under pressure to reach an agricultural agreement that can be supported by the 144 other members of the World Trade Organization at its meeting in Cancun, Mexico, this September.
But heading into this week's gathering, the two sides remained far apart on the "three pillars" of the negotiations -- domestic supports, export subsidies and market access.
In addition, the EU is pressing for a fourth pillar on "geographical indications" that would bar foreign producers from selling food products using European place names.
The EU has drawn up a preliminary list of 36 food and drink brand names, including Parma ham, Bordeaux wine, Roquefort cheese and Champagne, that it says deserve protection.
WTO Director General Supachai Panitchpakdi told Reuters he expected the United States and the EU to brief other countries on Tuesday on any progress they've made.
"I think the U.S. and the EU certainly are working together on the agriculture package. But how much (progress they made), we didn't hear yesterday. We hope today," he said.
A spokesman for EU Farm Commissioner Franz Fischler described the U.S.-EU farm trade talks as "difficult"
"Many people are calling for leadership and leadership is what they are getting from the European Union. The idea is to get the Americans on board and try to find common ground on agriculture," the spokesman said.
The EU argues that its recent domestic farm policy reforms have given it more leverage in the farm trade talks and it is time for others to show more flexibility.
But the United States and the Cairns Group of agricultural exporting nations complain the EU's offer on reducing farm tariffs remains inadequate. Brussels is also resisting a goal of eliminating all farm export subsidies, but is willing to discuss doing that for some commodities.
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