Archive Article: 2002/08/02
USAfarm support policy is hypocrisy
The US has a point. Border protection for its farmers amounts to just 12% of agricultural value, compared with 31% in the EU. And although the EU can spend up to $60bn on trade-distorting aids, the US is only allowed $19bn.
So its OK to raise support to US farmers, while asking others to cut tariffs and eliminate export subsidies, it argues.
But statistics can deceive. The US is ignoring the EUs preferential trade agreements with the worlds poorer countries. Plus the US has only 2m farmers to support, while the EU has 7m.
The truth is, the US spends far more per farmer than the EU.
Telling others they must bear the burden of market liberalisation, while almost doubling its own farm spending, is hypocritical in the extreme.