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July 13, 2009

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Brad Wilson

WTO's neoliberal free trade ideology against subsidies isn't factual. It's an economic fact that farm commodities lack price responsiveness on both supply & demand sides. Farm Commodity Subsidies are unfair, but they don't cause low prices and oversupply. The policy cause is a lack of price floors and supply management (bottom side) and price ceilings and reserve supplies (top).
OPEC used market clout to raise prices. US uses even more clout to lower them so we lose $ on exports. All to give below cost gains to buyers. It's not at all for farmers, who got less & less since 1942-52, below cost 1981-2006. This applies to Doha (#2 at bottom of: http://www.tradeobservatory.org/library.cfm?refID=102666) Click my name for documentation

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Subsidies are important for agriculture. If it would be necessary to reduce them, this should happen simultaneously all over the world to prevent unfair competition


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