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Tractor Talk Discussion Forum

Ot about WTO and subsidized exports

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Dieselrider

08-01-2004 07:51:50




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This is off topic but very much farm related. I was reading a brief article about the WTO and their plan to eliminate or greatly reduce govt. subsidies on export ag and industrial products as well asreduce or elininate tarrifs on inports of such things. What do you guys think? Will this be a benefit to the American farmer or not? Will the USA even participate? What are your thoughts?




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Roger.

08-01-2004 09:52:38




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 Re: Ot about WTO and subsidized exports in reply to Dieselrider, 08-01-2004 07:51:50  
From what I have read about this yes all 147 countries in the world trade organisation have agreed to reduce export subsidies,this will take quite a while I think to implement but will have the effect to level the "playing field" a bit.I guess they want to make it fairer for poor countries to compete on the world market which they cannot do now because the rich nations are dumping product (with the aid of an export subsidy)making it below the cost of production.It will affect any product that survives only because it is subsidised, economics always dictate.

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Dieselrider

08-01-2004 10:52:29




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 Re: Ot about WTO and subsidized exports in reply to Roger., 08-01-2004 09:52:38  
So then, countries like China that subsidize most of their manufacturing to give them the edge in cost and pricing worldwide would also have to reduce their subsudies and thus make their products more expensive? That sounds good to me, if that's how it works.



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Roger.

08-01-2004 15:05:51




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 Re: Ot about WTO and subsidized exports in reply to Dieselrider, 08-01-2004 10:52:29  
Well you should know by now that theory and practice are two different things, I think it will be several more years dickering before anything kicks in and I believe its the export subsidy they are aiming at not the internal subsidy, dont hold your breath.



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