This paper discusses the U.S. policies of farm subsidies in relationship to the international agricultural market.
Written in 2005; 1,620 words; 2 sources; MLA; $ 52.95
Paper Summary:
This paper explains that, although the United States provides proportionally less support for its farmers overall than the E.U., it is the second largest supporter of agriculture in the developed world; some commodities, such as sugar, have overall support at E.U. levels. The author points out that evidence suggests that the current U.S. barriers hit the very poorest countries hardest. The paper relates that direct support given to U.S. farmers and the presence of significant trade barriers for certain products means that the United States agricultural production is higher than it would be otherwise, which lowers world prices; moreover, U.S. direct export subsidies, export credits and food aid are likely to have a further depressing effect on world prices.
From the Paper:
"This evidence also suggests that the United States Generalized System of Preferences, U.S. GSP, program is not particularly generous with respect to agricultural products, a point supported by some WTO calculations. The estimated gap between the average agricultural tariff faced by middle-income countries, who will largely have GSP terms, and OECD ones, who will mainly face MFN rates, in the United States is only 1.5 percent. A wide range of agricultural products are indeed excluded from coverage under the U.S. GDP, and even the U.S. Africa Growth and Opportunity Act, AGOA, excludes many significant agricultural products."
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