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AFX European Focus | April 29, 2002

SYDNEY - The government will consider challenging US farm subsidies in the World Trade Organisation and may impose punitive duties on subsidised US farm produce exported to Australia, Agriculture Minister Warren Truss said.

"Any of the measures which do not comply with WTO rules, we will challenge," he said.

"Clearly some of the measures being spoken of in the farm bills are, we believe, not consistent with US obligations."

His attack followed endorsement by a US Congressional committee of a six year plan which will increase subsidies by 70 pct, giving an extra 4.8 bln usd a year to the already heavily protected sector.

"This is an appalling signal to the world and the farm bill is very very bad news for international leadership," Truss told ABC radio.

"The Americans have prided themselves on having some of the most advanced agriculture in the world. Now it is clear many of their farmers will be dependent on the taxpayers for 50 pct of their incomes.

"Americans farmers have become a part of the welfare system of that country."

National Farmers' Federation president Ian Donges said Australian farmers would suffer because of a return by the US to the worst protectionist excesses of the 1980s. "This is really a backwards step for the world," he said.

"If there is any opportunity to challenge any aspect of that through the WTO system, then we must do that with all the vigour and rigour we can bring to bear."

Kay Hull, MP for the agricultural Riverina electorate in the state of New South Wales, said it was time Australians "were able to stand up to this giant."

"Surely we have to have compensation for fighting right alongside the Americans with respect to terrorism and the war on terrorism," she said.

"I see what is happening with the US Farm Bill as an act of terrorism on Australian producers and growers."

Copyright 2002 AFP-Extel News LimitedAFX European Focus:

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