European Voice, Roll Call | May 3, 2002
BRUSSELS, Belgium -- The European Commission is poised to mount a World Trade Organization challenge against U.S. plans to massively increase spending on agricultural subsidies.
EU farm chief Franz Fischler said Wednesday that America's new farm bill would breach WTO limits on the amount of "production distorting" agricultural subsidies that can be allowed.
"This proposed legislation marks a blow for the credibility of U.S. policy in the WTO, where the U.S. has presented a trade-oriented agenda wholly inconsistent with the new bill," the Austrian commissioner said.
"We cannot negotiate on the basis of 'do as I say, not as I do.'"
Key representatives of the U.S. House and Senate have endorsed the bill's six-year plan, which would see farm subsidies rise by some 70 percent.
The House passed the conference report on Thursday. When the Senate follows suit and President Bush signs it into law, an extra $5.3 billion per year would be allocated to the country's farm sector.
The EU's anger is shared by Australia. Warren Truss, the country's farm minister, has already warned Washington that Canberra would refer the bill to the WTO.
"Any of the measures which do not comply with WTO rules, we will challenge," he said.
Fischler argued that the farm bill runs counter to commitments on reducing subsidies made at last November's ministerial conference on world trade in Doha, Qatar.
"This risks calling into question the reform promises of Doha.
"At a time when all developed countries have accepted the direction of farm support away from trade and production distorting measures, the U.S. is doing an about turn and heading in the opposite direction."
This story was originally published Thursday in European Voice, an Economist Group business. For more news about the European Union, go to http://www.european-voice.com/.
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