EU policy makers and farmers organisations have
expressed concerns that the new US Farm Bill will endanger WTO
trade liberalisation talks on agriculture.
The proposed new legislation would raise price guarantees
for corn, wheat, oats, and sorghum. It would also revive a
target price system, abolished in 1996, to provide
additional payments to farmers when commodity prices are
below minimum levels.
The additional subsidies to US farmers,
amounting to 73.5 billion dollars, threaten to distort
production and markets across the world. The reinforced
price-linked payments which shield farmers from low prices
will result in over-production.
The US Farm Bill adds to the ongoing
EU-US trade disputes over steel, beef and company tax