Subsidy System in No Present Danger, Says House Ag Chairman

Monday’s ruling by the World Trade Organization that U.S. cotton subsidies are trade distorting may ultimately threaten these subsidies but not for the foreseeable future, said Bob Goodlatte, R-Va., chairman of the House Agriculture Committee.

“This litigation is the beginning, not the end, of the process,” he said. “It is certainly not the end of farm programs.”

Even if the WTO ultimately decides against the United States, the U.S. government would still have plenty of time to get into compliance, said Robert Zoellick, U.S. trade representative.

Indeed, Brazil, which brought the case against U.S. farm subsidies, may have done itself more far more harm by choosing to submit the issue to a panel of judges instead of negotiating as part of ongoing world trade negotiations, Zoellick said.

For now, he said, the U.S. government’s strategy will be to appeal the decision while negotiating a worldwide agreement to lower agricultural subsidies and tariffs.

Some policymakers aren't as optimistic – or sparing – in their public statements.

“I think we need to tell the WTO to go to hell,” said Louisiana Agriculture Commissioner bob Odom. “We’ve got to do whatever it takes to keep our people in business.”

Posted by Jim Langcuster at April 30, 2004 10:18 AM | TrackBack