07/24/08 U.S. proposes even greater domestic subsidy cuts in Doha talks

Farm and Ranch July 24, 2008 There has been a ministerial meeting round in Geneva this week in the still ongoing Doha round of world trade talks. U.S. Trade Representative Susan Schwab made a new U.S. offer on reducing trade-distorting U.S. agricultural subsidies. Schwab: "To move these negotiations forward this week and in an effort to see a conclusion to the Doha round in 2008, and in exchange for an ambitious market access outcome in agriculture we are prepared to reduce our overall trade distorting domestic support to 15 billion dollars." Schwab said the proposed reduction to 15 billion dollars is significant pointing out that total U.S. trade distorting support has exceeded that level in recent years and would require adjustments to farm programs. Schwab: "We have as recently as two years ago been at 18.9 billion. As recently as 5-7 years ago we were over 24 billion." USDA Undersecretary Mark Keenum, who is also in Geneva, expressed optimism that the U.S. Congress would accept such a deal if it can be reached. Trade Representative Schwab emphasized the deeper cuts the U.S. is proposing would have to be accompanied by significant market access in agriculture and could not be subject to legal challenges that would reduce them even further. The U.S. offer came following an European Union proposal to cut tariffs by 60 percent to encourage developing nations to make larger concessions. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.