U.S. wants worldwide end to farm subsidies
Regional-USA, Economics, 7/7/2005

US President George W. Bush said he wants to work with the European Union (EU) to end agricultural export subsidies for U.S. and EU farmers by 2010, a move that would help farmers in developing countries better compete in the global market.

Addressing the press July 7 with British Prime Minister Tony Blair, Bush said, "I think it's very important for the world to hear very clearly the position of the United States and that is we want to work with the EU to rid our respective countries of agricultural subsides.

"I would hope that by 2010 that the Doha Round will achieve that objective," Bush said, in reference to ongoing negotiations regarding a multilateral trade liberalization pact drawn up by the World Trade Organization (WTO) in Doha, Qatar, in 2001. Bush said the next meetings on the Doha Round, scheduled to take place in Hong Kong in December, is "the best place" to negotiate the issue.

The president was speaking ahead of the first round of meetings at the Group of Eight (G8) summit in Scotland. The G8, which gathers the leaders of the eight most industrialized countries, consists of the United Kingdom, France, Germany, Japan, Russia, Canada, Italy and the United States.

On July 8, the G8 leaders will discuss African development and ways to alleviate poverty, and will meet with the leaders of Algeria, Ethiopia, Ghana, Nigeria, Senegal, South Africa and Tanzania.

"This is going to be a successful summit," Bush said, because Prime Minister Blair, who is hosting the event, "set very important goals for the industrialized world to meet, one of which is to help impoverished people on the continent of Africa."

Meantime, all members of the World Trade Organization (WTO) should place elimination of agricultural subsidies high on their trade agendas, according to U.S. Agriculture Secretary Mike Johanns.

Johanns told reporters in Washington yesterday that farm subsidies do not meet the needs of an increasingly global market economy.

"The day has arrived for the elimination of subsidies," he said.

The agriculture secretary said President Bush's July 6 challenge to the Group of Eight nations (G8) to create a new balanced trade regime to benefit Africa was "right on target." Bush spoke after he met with Danish Prime Minister Roul NyrupRasmussen in Lyngby, Denmark, in advance of the annual meeting of the heads of state of the G8, which comprises Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and Russia. The meeting is taking place in Gleneagles, Scotland, July 6-8.

Johanns will travel July 9 to China for a WTO "mini-ministerial" meeting of agriculture and trade ministers to discuss ending subsidies and a variety of other issues. He said he is confident discussions will advance the development of a "reformed" WTO trade agenda before trade ministers from the 148 WTO members meet in Hong Kong in December. The reform agenda would be based on three pillars: eliminating trade-distorting export subsidies, reducing domestic supports and increasing market access.

Among issues Johanns plans to discuss with Chinese officials is China's use of sanitary and phytosanitary (SPS) standards, which vary among provinces, and their effect on farm trade.

The secretary also plans to discuss how the United States can help meet China's evolving food needs, which are being driven by a growing middle class, he said.

Since China joined the WTO in 2001, agriculture trade between the country and the United States has increased 240 percent, making China the fifth-largest U.S. farm export market, with particularly strong sales of soybeans and cotton, Johanns said.

The potential for further growth of U.S. farm exports to China is "very real," he added.

The safety of U.S. beef is another issue Johanns plans to address. In meetings with Chinese officials and in bilateral meetings with agriculture ministers of Japan and Korea, he will push for the reopening of the countries' markets to U.S. beef, he said. The markets were closed to U.S. beef following the discovery of the first of two cases of bovine spongiform encephalopathy (BSE), also known as mad cow disease, in the United States, one in December 2003 and another in June.

Johanns said results of USDA's BSE "expanded surveillance program" implemented in June 2004 in response to the first known U.S. case of the disease are "encouraging." The program, which has significantly increased the number of cows throughout the country tested for BSE, is providing a scientifically based body of information showing that U.S. cattle are "remarkably healthy," he said.

Johanns said that the program meets international testing standards and proves that testing every head of cattle is unnecessary.

The "firewalls" of the early-identification and containment system work well, Johanns said, adding they ensured that the a second case of BSE discovered in an aged cow in the United States in June could not enter the food supply.

"U.S. beef is safe," Johanns said.

The secretary said he expects Taiwan will resume importing U.S. beef because USDA has provided it with requested epidemiological information.

Johanns then plans to travel to Madagascar to sign an agreement on providing technical assistance to the country to help it meet its Millennium Challenge Account (MCA) goals for boosting agricultural and rural development. In April, Madagascar was selected as the second country to receive MCA aid. MCA is the Bush administration's supplemental aid program designed to reward countries that demonstrate a commitment to economic and social reforms.

Johanns then is scheduled to travel to Senegal to address ministers from 37 African nations at a meeting on the African Growth and Opportunity Act. The U.S. law, which became effective in 2000, offers incentives for African countries to continue their efforts to open their economies and build free markets.

Previous Stories:
  The Guardian: US and UK's position on 100 % debt relief to Africa   (6/3/2005)
  State's Wayne sees economic growth potential in middle east   (5/19/2005)
  Americas' hemispheric trade ministers offer guidance for final phase of free trade talks   (11/22/2003)
  Africa's development impacted by lack of farm trade reform, UN report   (7/25/2003)
  Continued differences within WTO over agriculture   (6/26/2003)

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