U.S. breaks G-20 promise on trade

Just to remind you of what they said in April:

"We reaffirm the commitment made in Washington not to raise new barriers to investment or to trade in goods and services, including within existing WTO limits, not to impose new trade restrictions, and not to create new subsidies to exports." G-20 Communiqué emphasis added

By any measure the re-introduction of an export subsidy for the coddled U.S. dairyfarmer is a new subsidy, even if within the terms of the 1994 WTO agreement on subsidy ceilings (cooked-up by the USA and EC in 1992). It's outrageous and damaging. But foreseeable.

"The US Agriculture Department said it will subsidise about 92,000 tonnes of dairy products headed for the world market. A spokeswoman said the subsidies would help US farmers hit by plunging international prices and trade volumes and was the first time in five years the program would be used." Extract from The Age

Tags for this entry: agriculture g20 subsidies