US Flexibility on Agricultural Subsidies a Step in the Right Direction

Media reports suggest that the US negotiators at the World Trade Organization in Geneva have announced that they are ready to work with the range on agricultural subsidies put forward in Crawford Falconer, chair of the WTO agriculture negotiations back in July in an effort to break a long-time impasse in the talks.

Jim Lyons, Vice President for Policy and Communications for Oxfam America, responded as follows:

“The willingness by US negotiators to discuss lower ceilings for annual agricultural subsidies is a positive indication that the US Administration is willing to push forward on the Doha front.

“It is too soon, however, to say if such a ceiling would revive the hobbled Doha round or end up truly helping developing countries and poor farmers around the world. Details matter tremendously in this case, especially what and how subsidies are included under such a ceiling.

“Given current high market prices, a ceiling of $13 billion would require little or no changes to the current Farm Bill, even as it is chock-full of trade distorting subsidies. Most importantly, American cotton producers will continue to be subsidized to the tune of more than a billion dollars a year under this scenario, lowering international prices and threatening the livelihoods of millions of farmers in West Africa, many living on just a dollar a day.”

For information: Laura Rusu (202) 496-1169 or (202) 459-3739

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