New Delhi: In a scathing attack on European Union (EU) for charging India with trying to create an artificial North-South divide on contentious farm issues at World Trade Organisation (WTO), New Delhi on September 5 said the EU now knows "where the shoe pinches" as it was the biggest beneficiary of the pro-developed EU-US farm proposal.

"The greatest beneficiary of EU-US framework is the EU as it proposes much less reductions than even the Uruguay Round for developed countries besides virtually protecting their export subsidies," official sources said ahead of the Ministerial, hinting that Cancun could be another failure like Seattle if the EU did not budge from its unreasonable stand.

Responding to EU Trade Commissioner Pascal Lamy's criticism of India for going along with Brazil to counter EU-US joint proposal, the sources said 75 to 80 per cent rich farmers will continue to be protected to the detriment of poor farmers in developing countries.

The EU has no concern for other nations which is why not only developing countries but some developed countries were also supporting the India-Brazil counter proposal, sources said.

If the negotiations on farm were to be meaningful, the EU would have to take at least 10 steps forward for developing countries to respond, the sources said, adding, "Instead of taking five steps forward EU is trying to take five steps backwards."

PTI