The Australian Minister for Trade, has expressed his critics when he realized new US farm Bill, which passed the US Congress on 15 May, has increased the Government support to agriculture. Till now he probably relied on the US Congress will remove them and reform their policy of farm subsidies.
So he said: 'This Farm Bill fails the reform test. It entrenches a welfare approach to farm policy in the United States. It is particularly disappointing that the Bill increases government hand-outs rather than reduces support for agriculture at a time of record commodity prices and farm incomes in the United States.'
The Australian Minister for Trade, refers, he is mainly concerned about the Bill’s negative impact on Australia’s agricultural exporters, which do not rely on ongoing subsidies. He thinks the subsidies, in US, are now more easily available to farmers for some major commodities, besides some discriminatory charges in Farm Bill would negatively affect Australian exporters in the world and US market.
He also said: 'I have also argued that implementing market-oriented farm policies – as Australia has done – would create significant new opportunities for US and global agriculture.'
The Ministry for trade press office shows us the Minister hope some in US Farm Bill could again be changed, explaining the Bill will now be forwarded to the White House for the US President’s consideration and the President could not support it. They also highlight the Bill dramatically underlines the necessity to conclude the WTO Doha Round this year. A strong Doha outcome on domestic support would impose limits on US spending.
Source: Australian Ministry for Trade
Author: Luca Federico Fianchini, May 16, 2008