U.S. Proposes 5% Cap on Farm Programs

WASHINGTON - Jul 25/02 - SNS-- The United States is proposing agricultural support programs in individual countries be capped at 5% of the value of agricultural production.

The concept is winning quick support within the U.S. agriculture industry, with the National Grain and Feed Association and North American Export Grain Association and the American Soybean Association.

If the proposal is accepted by the World Trade Organization (WTO) and implemented by member countries, the U.S. estimates it will slash $100 billion in international export subsidies and production support payments.

The United States argues the current application of allowable trade-distorting support is not evenly applied among all members of the WTO. It says while agricultural production in the European Union and United States are roughly equal in value, Europe can spend $60 billion a year on support payments, while the U.S. is capped at $19 billion.

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