Developing countries are fighting hard to retain the right to increase farm im-port tariffs in spite of slashing them rapidly to cope with the global food crisis. Faint signs of progress in the troubled "Doha round" of global trade talks last week in Geneva were imperilled by a fresh dispute over poor countries' ability to protect their farmers with tariffs. A group of developing countries, led by Indonesia, insisted on the right to exempt so-called special products from big cuts in protection on the grounds of defending small farmers' livelihoods and ensuring food supply. One trade diplomat in Geneva said: "To the outside world these debates must look utterly bizarre." The World Trade Organisation negotiates over "bound" rates, the theoretical maximum a country is allowed, rather than the "applied" rates it is actually using at any one time. While many countries, including India and Indonesia, have slashed their applied tariffs, sometimes to zero, they are resisting making those cuts permanent. Officials say they need to retain flexibility or "policy space", particularly if food prices fall. The Philippines recently lifted its rice import quotas amid a supply crisis in the country, which led to unrest and accusations of hoarding. But Manuel Teehankee, the Philippines ambassador to the WTO, told the Financial Times: "We are dealing with a temporary problem caused by bad harvests abroad and unreliable supply from the usual exporters. In the medium term we want to protect rural livelihoods and food security, and to do that we need to preserve -policy space." The country announced an ambitious plan to make it self-sufficient in rice within three years. Mr Teehankee said the right to use import tariffs would encourage growers to keep land for rice rather than converting it to industrial use. Economists said the food crisis might end up hurting rather than helping permanent trade liberalisation by encouraging countries to insulate themselves from global markets. David Orden of the International Food Policy Research Institute in Washington said: "A reasoning of 'If the world markets can't be counted on, best to keep our options open' may impede Doha progress." Other aspects of the food crisis touch directly on existing wounds within trade talks, such as export bans and taxes imposed by countries such as Argentina to stop food being exported. The European Union has for years tried to institute rules against export taxes, which are not prohibited by WTO rules, against fierce opposition from Argentina. Peter Mandelson, trade commissioner, last week told the European parliament: "As a general rule export taxes, quotas or bans do not make economic or development sense." In the US, rising food prices have done little to boost the reform effort for agricultural subsidies. The farm bill that will set the subsidy regime for the next five years is in a tricky endgame, mired in arcane disputes between the House and Senate with the White House occasionally threatening a veto if it raises taxes. But apart from a rise in food stamps for poorer people, the bill appears almost unaffected by the huge rises in commodity prices, continuing to maintain or even lift price supports for corn, wheat and other grains. Copyright The Financial Times Limited 2008