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WASHINGTON, D.C., September. 4, 2003 -- CropChoice news -- , NY Times,
09/03/03: On the eve of global trade talks,
the United States Department of Agriculture released
a report today showing that there were few effective
payment limits on the $20 billion that the country spends
each year to subsidize farmers.
Poor and developing nations have complained that subsidized
agricultural exports from rich nations destroy the livelihood
of millions of farmers in Africa, Asia and Latin America.
Farm subsidies will be the subject of negotiations at
a World Trade Organization meeting next week in Cancún,
Mexico.
Republicans lawmakers in Congress beat back a bipartisan
move in the Senate to introduce payment limits in the
2002 farm bill, which was signed by President Bush.
The administration took no stand on the issue during
the debate.
In its annual report on global economic prospects also
released today, the World Bank urged the United States
and other wealthy nations to reduce subsidies as part
of an overall plan to lift poor nations out of poverty
through trade and investment. The World Bank's chief
economist, Nicholas Stern, said the wealthy countries
could "show leadership by reducing agricultural
protection."
Big industrial-scale American farms, the ones most
responsible for growing the surpluses of farm produce
that are exported, are collecting an ever-greater share
of the farm payments, according to a separate analysis
released today by the Environmental Working Group, a
nonprofit organization.
In 1995, they received $3.98 billion, or 55 percent
of all federal farm payments. In 2002, their portion
increased to $7.8 billion, or 65 percent of all federal
payments.
Acknowledging that payment limits are among the most
sensitive and emotional issues in farm programs, Keith
Collins, the chairman of the commission issuing the
report, said his goal was to help Congress as it continues
to debate whether to limit the payments - which is the
goal of smaller farmers - or to leave them largely unfettered,
which helps the biggest farmers.
"If your goal is to encourage exports, then maybe
you don't like payment limitations," Mr. Collins
said, summarizing the conclusion of the 10 member panel
chosen by Congress and Ann M. Veneman, the secretary
of agriculture.
The commission made no recommendations on the wisdom
of limiting farm payments, saying the decision rests
with Congress.
The report points out that "those who view abundant
farm production or increasing exports as primary goals
of farm programs may well argue that there should be
no payment limits at all, as any limits, if they are
effective, might curtail production and therefore exports
as well."
Ken Cook, president of the Environmental Working Group,
said the new report on payment limitations was "important
and sobering."
The report, Mr. Cook said, "strengthens the hand
of reformers who want a more equitable farm program
that doesn't distort trade and supports conservation."
Source:
http://www.nytimes.com/2003/09/04/business/worldbusiness/04trad.html
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