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Trade-distorting subsidies may rise so much, Europeans fear, that America will break its Uruguay-round commitments.
ECONOMIST: What happened to free trade? | The
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America's trade-distorting support was already well below its permitted ceiling and had seemed likely to fall further.
ECONOMIST: What happened to free trade? | The
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Contrary to received wisdom, slashing the rich world's trade-distorting subsidies has a relatively small effect on poor countries.
ECONOMIST: Weighed in the balance
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In the Uruguay round, pushed by America, countries agreed to cut and set ceilings on their trade-distorting agricultural subsidies.
ECONOMIST: What happened to free trade? | The
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This angered the British government, which has been pushing for a shake-up of the hugely expensive and trade-distorting policy.
ECONOMIST: Rendezvous in Versailles | The
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Over five years, the Americans propose to eliminate export subsidies for farm products, and to slash both tariffs on farm goods and trade-distorting subsidies for farmers.
ECONOMIST: Trade
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Mr Portman's proposal includes a 60% reduction in the levels of farm supports and a 53% reduction in trade-distorting subsidies, as well as steep cuts to tariffs.
ECONOMIST: America tries to get things moving | The
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The divide over agriculture threatens to undermine Doha because the developing countries, which object most strongly to the trade-distorting subsidies provided to farmers in the industrial world, were such reluctant participants in the first place.
ECONOMIST: Will there ever be a breakthrough?
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The document calls for reductions in farm subsidies elsewhere in the developed world that are even steeper than those proposed for America: an 83% reduction in aggregate support levels in Japan and the EU, and a reduction in trade-distorting support of 75% (53% for Japan).
ECONOMIST: America tries to get things moving | The
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The draft says countries must reduce trade barriers and "market-distorting policies" to help farmers -- particularly those in developing countries -- sell their products and increase production.
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