EU, Brazil to propose farm subsidies overhaul to appease developing nations

EU, Brazil to propose farm subsidies overhaul to appease developing nations

Chamber Articles Category: Trade News Post Date: 07/17/17 Source: Politico By: SIMON MARKS
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The European Union and Brazil will tell the World Trade Organization on Monday they are ready to shake up generous farm subsidies to reform a global trade landscape widely seen as stacked against emerging countries.

The WTO’s attempts to create an overarching architecture for international trade networks have stumbled repeatedly over the politically inflammatory topic of agricultural subsidies. The EU has a broadly liberalizing trade agenda and wants to slash subsidies that obstruct the efficient flow of goods around the world and block big free-trade deals.

Brussels, however, is also a big farm subsidizer and lavishes 40 percent of its budget on agricultural payments, sparking complaints from poorer nations that they simply cannot compete. Developing countries also protest that they are consistently advised to avoid paying subsidies themselves by global financial institutions.

Such frustrations boiled over earlier this year when former U.N. Secretary-General Kofi Annan quipped “the European Union pays enough subsidies to fly each cow in Europe around the world first-class and still have money left over.” Read Full Article