10/09/07 U.S. reports domestic support payments to WTO

Farm and Ranch October 9, 2007 Acting Agriculture Secretary Chuck Connor announced last week that the United States had submitted its domestic support notifications to the World Trade Organization for the years 2002-2005. Connor: "The United States takes very seriously its obligations to report our domestic supports under our WTO notification procedure. We have now done that through the 2002-2005 crop year and those reports indicate that the U.S. has stayed within its limits provided with the WTO." The U.S. reported its trade distorting support level, or Amber Box payments, below the 19.1 billion dollar annual ceiling. Those ranged from 9.6 million dollars in 2002 to 12.9 million in 2005. The U.S. also reported direct payments as, non-distorting green payments. Connor: "We believe strongly that that is the case and we are prepared to defend that." The National Association of Wheat Growers says that if the direct payments were changed in any way that would qualify them as Amber Box, by tying them to price for example, the U.S. would push past the limits and be out of compliance with WTO commitments making American farm programs vulnerable to challenge. The cornerstone of NAWG's 2007 Farm Bill proposal has been the direct payment because it is both WTO friendly and provides stability for growers, their bankers and farm communities, even in successive years of disaster, and NAWG urges Congress to keep the direct payment intact. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.