08 May 1998
USA loads subsidy weapon in trade battle with EU
THE USA announced it would use its Export Enhancement Program to subsidise farm products. Dan Glickman, agriculture secretary, told the Senate agriculture committee this would indemnify US exporters from lost sales arising from specific “injurious” trade barriers.
He said the USA would subsidise poultry sales in the Middle East to allow US farmers to compete with European Union (EU) exports. This would punish the EU in a dispute over poultry sanitation practices.
The USA expects to also lift its annual cap of 118,000 tonnes on its “dairy incentive program” to clear the way for the sale of about $50 million-worth of further dairy products, mostly to Mexico and the Caribbean.
- Financial Times 08/05/98 page 7