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Thursday, July 27, 2006

It's not just the Doha Round that failed...

I think the WTO itself is in serious trouble. The ability of farm interests in the EU and US to halt the negotiations will also embolden them to ignore impending deadlines for trade reform:

But the failure of WTO powers to agree means last year’s agreement for developed countries to eliminate all forms of export subsidies for cotton by the end of this year is now hanging in the balance.

Agreements for developing countries such as the overall elimination of agricultural export subsidies by 2013, an aid-for-trade package and duty-free access for the WTO’s poorest members are also on unsure footing. [More]

In the absence of other sectors realizing what has been lost and asserting political leverage, I think Congress will be working hard to shovel money out to the farm. The idea of shaping the new farm bill to be "WTO-compliant" could be a collateral casualty of the Doha breakdown.

My prediction: more - maybe even much more of the same. Congress has has a popularity rating even lower than the Cubs winning percentage, and heading back home to claim credit for subsidies is a tried and true game plan.
Rove expressed a need to shore up political support in farm states in advance of the Nov. 7 elections. Sources say an analysis by Rove showed that further cuts in farm program subsidies would be a major factor in several farm-state races this Nov. 7.

[This from Jim Weisemeyer's frankly disheartening Inside Washington Report to ProFarmer members]
It also means our meat industry just got a 1-2 punch. Competition from ethanol to bid up feed costs and no help opening markets for their high-value products.

Strange way to treat your best customer!

¶ 2:51 PM

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US Farm Report host John Phipps surfs the Web so you don't have to...

: Name: John Phipps; Location: Chrisman, Illinois, United States

Jan and I farm 1700 acres near Chrisman, IL. I have also written humor and commentary for Farm Journal and Top Producer for 13 years. Please visit my website (www.johnwphipps.com) to learn about my speaking services for your group's next meeting.

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John's World Thursday, July 27, 2006 It's not just the Doha Round that failed... I think the WTO itself is in serious trouble. The ability of farm interests in the EU and US to halt the negotiations will also embolden them to ignore impending deadlines for trade reform: But the failure of WTO powers to agree means last year’s agreement for developed countries to eliminate all forms of export subsidies for cotton by the end of this year is now hanging in the balance. Agreements for developing countries such as the overall elimination of agricultural export subsidies by 2013, an aid-for-trade package and duty-free access for the WTO’s poorest members are also on unsure footing. [More] In the absence of other sectors realizing what has been lost and asserting political leverage, I think Congress will be working hard to shovel money out to the farm. The idea of shaping the new farm bill to be "WTO-compliant" could be a collateral casualty of the Doha breakdown. My prediction: more - maybe even much more of the same. Congress has has a popularity rating even lower than the Cubs winning percentage, and heading back home to claim credit for subsidies is a tried and true game plan. Rove expressed a need to shore up political support in farm states in advance of the Nov. 7 elections. Sources say an analysis by Rove showed that further cuts in farm program subsidies would be a major factor in several farm-state races this Nov. 7. [This from Jim Weisemeyer's frankly disheartening Inside Washington Report to ProFarmer members] It also means our meat industry just got a 1-2 punch. Competition from ethanol to bid up feed costs and no help opening markets for their high-value products. Strange way to treat your best customer! ¶ 2:51 PM Comments: Post a Comment << Home US Farm Report host John Phipps surfs the Web so you don't have to... About Me Name: John Phipps Location: Chrisman, Illinois, United States Jan and I farm 1700 acres near Chrisman, IL. I have also written humor and commentary for Farm Journal and Top Producer for 13 years. Please visit my website (www.johnwphipps.com) to learn about my speaking services for your group's next meeting. View my complete profile ARCHIVES April 2006 / May 2006 / June 2006 / July 2006 / August 2006 / September 2006 / October 2006 / November 2006 / December 2006 / January 2007 / February 2007 / March 2007 / April 2007 / May 2007 / June 2007 / July 2007 / August 2007 / advertisement MORE FROM JOHN On the Coffee Table
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