FarmPolicy

Farm Subsidies: Potential WTO Litigation

An article posted on Friday at The Copenhagen Post Online reported that, “Golden fields of rapeseed are becoming an even more common sight in Denmark these days as more and more farmers are finding out just how profitable the plant can be, reported financial daily Børsen…Recent figures from Statistics Denmark show that areas used for growing rapeseed have increased by 54,000 hectares already this year – a full 44 percent more than in 2006. This year has seen such an increase in rapeseed production that the plant now covers nearly 1.8 million hectares and trails only spring barley and winter wheat in terms of growing area.”

I. Farm Bill Issues
II. Biofuels
III. China

I. Farm Bill Issues

On Friday, the “Washington Insider” section of DTN indicated (link requires subscription) that, “News reports from Mexico say that Mexican rice farmers have retained a Washington, D.C., law firm to give legal advice as they work to convince their government to file an unfair trade suit against the United States. Mexico’s National Union of Rice Producers is calling on its government to bring the case to the World Trade Organization for what the growers call the ‘excessive subsidies’ that the United States pays to its farmers. (Graph from The Wall Street Journal Online.)

“Not so long ago, the shoe was on the other foot when U.S. rice growers won a WTO case against their Mexican counterparts.” [Related press release can be viewed here]. “Some industry observers believe the current agitation may represent nothing more than a desire to get even. However, others see a pattern developing with regard to WTO challenges to U.S. farm subsidies. Brazil earlier won a case against U.S. cotton subsidies and has been considering filing a similar action against U.S. soybeans. And Canada has begun a case against U.S. corn subsidies.

“So, one by one, U.S. farm subsidies either are or soon may be coming under attack, just as Congress gets down to the final phases of writing the next farm bill,” the DTN item said.

(more…)

Posted by Keith Good • August, 27, 2007 • 3:47 am