U.S. – Australia Relations

New United States Farm Bill: A Lost Opportunity

Canberra — 16 May 2008

The Minister for Trade, Simon Crean has expressed his dismay at the increase in US farm support proposed in the 2008 Farm Bill, which passed the US Congress on 15 May.

"This Farm Bill fails the reform test," he said. "It entrenches the welfare approach to farm policy in the United States. It is particularly disappointing that the Bill increases government hand-outs rather than reduces support for agriculture at a time of record commodity prices and farm incomes in the United States."

"The Bill is short-sighted, reactive and a lost opportunity," he said.

"I am especially concerned about the Bill’s negative impact on Australia’s highly competitive agricultural exporters which do not rely on ongoing subsidies."

"Making subsidies more easily available to US farmers for commodities like wheat, barley and sugar and imposing discriminatory charges against our dairy exporters affect our competitiveness in world markets, including the US market."

"I have registered with Congress during my recent visit to Washington the importance of the US taking this opportunity to reform its farm subsidies," he said. "I have also argued that implementing market-oriented farm policies — as Australia has done — would create significant new opportunities for US and global agriculture."

The Bill will now be forwarded to the White House for the US President’s consideration. The President is on the record as saying he would not support it.

The Bill dramatically underlines the necessity to conclude the WTO Doha Round this year. A strong Doha outcome on domestic support will impose limits on US spending that the President wants but the Congress won’t impose.

"It is now critical that we press ahead to conclude a Doha Round that limits trade distorting farm subsidies. Producers and consumers from around the world will ultimately benefit from a reduction in such trade distorting support."

"I am committed to securing a Doha outcome which delivers meaningful reform to agriculture. I will continue to encourage the US leadership in concluding the Round and in delivering the substantial gains that will flow from liberalised global trade," he said.

Original document from www.trademinister.gov.au.

Last update Wednesday, 18 June 2008