Wednesday, July 23, 2008

US Offers to Cut Ag Subsidies

US Trade Representative Susan Schwab stated that the United States was willing to cut agriculture subsidies to $15 billion as a measure of good faith to keep the Doha round of negotiations. This is a major concession on the part of the United States to other nations who have been critical of the US farm subsidies.

"This is a major move taken in good faith with the expectation that others will reciprocate and step forward with improved offers in market access," she said. "These cuts will deliver effective and significant reductions in trade distorting domestic farm support."

The talks, called the Doha Development Round, aim to make trade fairer for poor countries. The United States and European Union have been under pressure to reduce their agricultural subsidies and to cut tariffs.

Developing countries say trade-distorting subsidies give the wealthy countries an unfair advantage, making it difficult for them to compete in the open market.

Wealthy countries say they are willing to cut their farm supports, but in return the poorer countries have to provide greater market access to their manufactured goods and services.

No comments: