Washington/Brussels
The European Commission has criticised the United States for a new Farm Bill, underlining that larger domestic subsidy cuts are needed in order to break the deadlock in the world trade talks.
The Commission’s Agriculture spokesman, Mr. Michael Mann, has said in his first reaction to the U.S. proposed bill that "If we are to have a successful outcome to the Doha Round, the United States will need to propose more ambitious cuts and discipline in trade distorting domestic farm subsidies."
European Union officials said in telephone interviews that they are hopeful that this is not "the end of the story" and that further steps could still be taken as the draft bill is just the American administration's first steer to Congress.
The bill that sets U.S. farm policy for the next five years, proposes to cut agriculture spending by at least ten Billion Dollars over a period of five years and to shift funds towards more World Trade Organisation (WTO) compatible programs - but, says the European Commission, the United States made only modest moves to cut generous government subsidies.
The Doha-Round negotiations are currently stalled because of American refusal to meaningfully reduce agriculture subsidies.
Oxfam, which is an opponent of rich countries' farm subsidies, said that the U.S. draft bill is an "encouraging step towards meaningful farm programme reform" that would allow funds to be directed towards vulnerable American farmers, while causing less harm to poor farmers in developing countries.
Subsidies mean that rich countries selling goods such as cotton or sugar can undercut farmers in poor countries that must cover all their own costs.
Israel Rafalovich
U.N. OBSERVER & International Report
Please also see:
Oxfam: Meaningful Farm Bill reform crucial for a pro-development round
http://www.oxfam.org/en/news/2007/pr070201_us_farmbill
The European Commission has criticised the United States for a new Farm Bill, underlining that larger domestic subsidy cuts are needed in order to break the deadlock in the world trade talks.
The Commission’s Agriculture spokesman, Mr. Michael Mann, has said in his first reaction to the U.S. proposed bill that "If we are to have a successful outcome to the Doha Round, the United States will need to propose more ambitious cuts and discipline in trade distorting domestic farm subsidies."
European Union officials said in telephone interviews that they are hopeful that this is not "the end of the story" and that further steps could still be taken as the draft bill is just the American administration's first steer to Congress.
The bill that sets U.S. farm policy for the next five years, proposes to cut agriculture spending by at least ten Billion Dollars over a period of five years and to shift funds towards more World Trade Organisation (WTO) compatible programs - but, says the European Commission, the United States made only modest moves to cut generous government subsidies.
The Doha-Round negotiations are currently stalled because of American refusal to meaningfully reduce agriculture subsidies.
Oxfam, which is an opponent of rich countries' farm subsidies, said that the U.S. draft bill is an "encouraging step towards meaningful farm programme reform" that would allow funds to be directed towards vulnerable American farmers, while causing less harm to poor farmers in developing countries.
Subsidies mean that rich countries selling goods such as cotton or sugar can undercut farmers in poor countries that must cover all their own costs.
Israel Rafalovich
U.N. OBSERVER & International Report
Please also see:
Oxfam: Meaningful Farm Bill reform crucial for a pro-development round
http://www.oxfam.org/en/news/2007/pr070201_us_farmbill