Doha Partners Underwhelmed by Administration Farm Bill Proposals

The Bush Administration released its proposals for the 2007 Farm Bill today: Bush Farm Proposal May Snag On Congressional Roadblocks (Greg Hitt, Wall Street Journal, Feb 1):

The Bush administration proposed to make U.S. farm programs more market-oriented, unveiling a package of changes that could give new momentum to the stalled Doha Round of global trade talks, but may face big hurdles on Capitol Hill.

The initiative would put total farm spending over the next five years at $87 billion, down $18 billion from what the U.S. spent in the past five years on basic programs and disaster relief. It would boost spending on conservation and put more emphasis on direct income payments to farmers. Such methods of support are more acceptable than subsidies of specific crops under the World Trade Organization, the body based in Geneva that is shepherding the Doha Round.

Here's the Department of Agriculture's 2007 Farm Bill web site.

These are the proposals that are supposed to jump start the Doha negotiations.  A U.S. offer to reduce farm subsidies is key to progress in the Doha Round.  The Farm Bill is the mechanism through which a Doha Agreement to reduce subsidies will be implemented.  So there is a foreign audience that will give the bill a careful reading.

Our negotiating partners aren't too excited:  Europe Faults U.S. Farm Proposal (Juliane von Reppert-Bismarck, Wall Street Journal, Feb 2); US reneges on trade promise (Geoff Elliott and Selina Mitchell, The Australian, Feb 2); EU: U.S. Needs More Farm Subsidy Cuts (AP vis Forbes, Feb 1)

von Reppert-Bismarck points out that that the Administration's proposals may not be the last word in negotiations:

EU officials and diplomats warned an overhaul that makes limited cuts to market-distorting payouts sends a bad signal to negotiators at the WTO. Yet Washington has pointed out that if a palatable deal can be struck at the WTO, commitments made there will override any domestic farm plan.

Comments

[m3 real karte]

Hi,
I had heard that Australia and India are two countries which have already publicly named the Farm Bill as an obstacle to a successful outcome of the Doha talks.