Is Farm Subsidy Progress a Realistic Hope?

WINNIPEG - Jul 8/05 - SNS -- There is lots of talk about reducing farm subsidies in Europe and the United States, but there is a real question as to whether it is realistic to expect progress from the WTO, cautions Louis Dreyfus Canada Ltd.

"The EU and the USA have both recently indicated their interest in ridding the global agricultural markets of the hugely distorting subsidies that they are largely responsible for. The talk is encouraging, especially during this week that the leaders are meeting, but it remains to be seen whether or not it's realistic to expect progress in this area," the company said in a recent review of the situation.

The company notes both U.S. President Bush and the European Commissioner for Agriculture, Mariann Fischer Boell have gone on record as saying they would be very interested in scrapping their current farm support programs. However, both parties also stipulate the discussion will only take place if the other party is willing to depart from their historical practice in farm subsidies. Sort of a case of 'I will if you will'.

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