The government will confront agricultural subsidies in industrialized countries with its own "agricultural armor" and through action in international forums such as the World Trade Organization (WTO), President Vicente Fox declared Monday.

Speaking at a press conference with the Agricultural and Economy secretaries, Fox assured he would not abandon Mexican farmers in the face of stiffening foreign competition on food products next year, when tariffs will be lifted on most agricultural imports from the United States and Canada.

"In my second State of the Nation Address (last September), I told (farmers) the federal government would not abandon them before unequal competition in the international markets, originating from large subsidies in other countries," Fox said. "Today we are making this promise a reality."

Tariffs will be eliminated on all U.S. and Canadian food imports except corn, sugar and milk starting Jan. 1, 2003 as part of the next phase of the North American Free Trade Agreement (NAFTA). Mexican farmers protest their livelihoods are at risk without the protection of tariffs on heavily subsidized imports from wealthy countries.

The government announced plans to establish an "agricultural armor" last August, saying it would provide financial aid to local producers and fight for subsidy elimination at the World Trade Organization (WTO), starting in October.

Among the measures outlined at the press conference, Agricultural Secretary Javier Usabiaga announced plans to establish per-ton price supports on grains and oilseed for a period of five years.

"For the first time in the history of the Mexican countryside a horizon of five years has been defined, guaranteeing a secure income for producers during this period," the Agence France Presse quoted Usabiaga as saying.

"If earnings from the market together with official Mexican subsidies (through the program Procampo), the producer doesn't earn the guaranteed wage, the government will take responsibility for making up the difference through additional support," Usabiaga added.

In addition, 2.5 million small farmers will receive a larger payment from Procampo of 1,030 pesos (US$103) per hectare (for a maximum of five hectares), said Usabiaga. Stockbreeders will receive fodder under contract with the government.

For his part, the Economy Secretary, Luis Ernesto Derbez, said various laws would be modified to facilitate Mexican complaints before international organizations like the WTO.

Although the projected government budget for 2003 includes a 3.9 percent reduction in funding for the agricultural sector, Fox says the additional support will be channeled through other means.

Fox added the subsidy issue"the main topic" of conversation during his meetings with British and French leaders on his recent trip to Europe and with Spanish Prime Minister Jose Maria Aznar at the Ibero-American summit last week.