Today the United States accepted the proposals to reach a multilateral agriculture agreement of the world trade organisation (WTO). According to the most important WTO-negotiators
for agriculture, the ambassador Crawford Falconer of New-Zealand, the US have been prepared negotiate on the basis of figures that he announced in July. However, the condition is that all other countries wants to work with the same parameters.
In that design of agreement the USA wants to bring back their agriculture subsidies between 12.8 and 16.2 billion dollar a year. So far Washington refused to go under an envelope of 23 billion dollar. The Intention is to drag an agreement in so-called Doha-round concerning the further liberation of the world trade.
The reason why the agricultural policy strives for agriculture subsidies, is stable food production. Consumers must buy agricultural products for reasonable prices.
I think its good for the world economy ( Europe, America, Asia,…) that everyone pays the same price of subsidies for agriculture. The import and export in agriculture machines will stabilise. It’s also very important to have a good world trade, especially for developing countries.
Sarah Struyf
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I agree that subsidies form the base of a stable food production. For example, when there shouldn' t be any subsidies for grain and the global grainprice drops, the farmers will seed less grain the next year. Instead they will grow something else like potatoes. The following year there will be a shortage of grain. And an excess of potatoes. The grain price shall rapidly rise and the potato price shall drop due to the inelasticity of agricultural products.
At the other hand, I don't defend trade barriers. These only exist to defend national or regional interests.
I can agree with Sarah about the fact that everyone should give an equal part of subsidies, they should be the same around the world. This should improve the liberation of the world trade.
Liquidation of subsidies would have the inverse result. Developing countries often suffer more from low agriculture prices then big industrial countries.
Thomas
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