Deal to Loosen Trade Reached (reduce farm subsidies)

[papau]

http://www.latimes.com/business/la-fi-trade1aug01.story
THE WORLD
Deal to Loosen Trade Reached (reduce farm subsidies)
The U.S. and others in the WTO will reduce their farm subsidies. Developing nations, which stand to benefit, will cut import barriers.
By Bill Sing
Times Staff Writer

August 1, 2004

Nearly a year after a revolt by developing nations derailed negotiations, the United States and other countries agreed early today to eliminate billions of dollars in farm export subsidies and reduce barriers to global trade.

The agreement by the 147 member governments of the World Trade Organization in Geneva rescues comprehensive free trade talks designed to boost global growth and promote economic development in poor nations. The 3-year-old negotiations had broken down last year in Cancun, Mexico, amid a show of unity and power among poorer countries.

Developing nations, led by Brazil and India, have contended that massive subsidies allow rich nations to flood global markets with farm products, depressing prices and impeding the economic development of poor countries that rely on agriculture as their primary source of exports. For example, African nations complain that American cotton subsidies contribute to the impoverishment of thousands of African growers.

Combined U.S. and European Union farm supports total $150 billion a year; the EU dairy industry, for instance, gets the equivalent of $2 per day per cow.

Under the latest accord, wealthier nations agreed to eventually do away with a host of government export subsidies of agricultural products such as cotton, rice, soybeans and wheat. Other forms of government farm subsidies would also be reduced or scrapped. <snip>

[German-Lefty]

1. Good - I'll believe it when I see it though

Probably they'll go back on their agreements and the WTO will do nothing to them. Ok, maybe I'm just being pessimistic.