The double standards followed by the US on farmer subsidies are a bane to the world
Americans like to think that i
f poor countries simply open up their markets, greater prosperity will follow. Unfortunately, where agriculture is concerned, this is mere rhetoric. The US pays only lip service to free market principles, favouring Washington lobbyists and campaign contributors who demand just the opposite. Indeed, it’s America’s own agricultural subsidies that helped kill, at least for now, the so-called Doha Development Round of trade negotiations that were supposed to give poor countries new opportunities to enhance their growth. Subsidies hurt developing country’s farmers because they lead to higher output – and lower global prices. The Bush administration – supposedly committed to free markets around the world – has actually nearly doubled the level of agricultural subsidies in the US.
Americans like to think that i
f poor countries simply open up their markets, greater prosperity will follow. Unfortunately, where agriculture is concerned, this is mere rhetoric. The US pays only lip service to free market principles, favouring Washington lobbyists and campaign contributors who demand just the opposite. Indeed, it’s America’s own agricultural subsidies that helped kill, at least for now, the so-called Doha Development Round of trade negotiations that were supposed to give poor countries new opportunities to enhance their growth. Subsidies hurt developing country’s farmers because they lead to higher output – and lower global prices. The Bush administration – supposedly committed to free markets around the world – has actually nearly doubled the level of agricultural subsidies in the US. For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
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