Read Kevin Drum's take on the stalled Doha talks for a very succinct summing up. Sample:
"Trade talks aren't quite that bad. But they're close. The
Doha round in particular lives or dies based on the willingness of rich
nations to substantially reduce tariffs and subsidies on agricultural
products, and seriously, what are the odds of that? We can't even have
a serious discussion about reducing subsidies on corn ethanol, possibly
the stupidest use of taxpayer dollars in the past century, let alone
reducing farm support payments to ConAgra and Archer Daniels Midland.
Meanwhile, the European attitude toward farming makes ours look
positively levelheaded and beneficient. Paris would probably go up in
flames if EU farm payments were ever rationalized."
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July 13, 2009
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Posted by: Home Security Houston | August 31, 2011 at 04:29 AM
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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Posted by: runescape money | March 20, 2010 at 02:58 AM
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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