Great News on farm subsidies
By NAOMI KOPPEL
Associated Press Writer
GENEVA (AP) -- World Trade Organization members approved a plan Sunday to end export subsidies on farm products and cut import duties across the world, a key step toward a comprehensive global accord that has been discussed since 2001, trade officials said.
Why this is good news although nothing has been finalized we still have those horrid negotiations. Last year Cancun ended in failure, and we canít forget we have two blocs in the world now; we have the Brazil-China-India axis and the US-EU-Japan axis on the other. The battle of wills might have begun. Also the developed states arenít giving up those subsides for nothing:
The document commits nations to lowering import duties and reducing government support in the three major areas of international trade - industrial goods, agriculture and service industries such as telecommunications and banking.
The west really wants to tap into the huge banking and telecommunications markets in the Developing world. Those sectors have been either government owned, or highly protected by the government. Already we seeing dissention among the developed world towards this positive development:
The biggest sticking point apparently was how to handle those farm products on which a group of 10 countries, including Japan and Switzerland, want to maintain higher import tariffs to protect domestic producers.
"What we regret is that some of the G10 concerns haven't fully been taken into account," said Swiss President and Economics Minister Joseph Deiss, who heads the G10. "The liberalization process will put additional economic pressure on our farmers."
Already we are seeing the formation of some tension here, there is no doubt that eliminating or greatly depreciating tariffs on agricultural goods is a good thing, but prices will plummet as well. But thatís not all that bad, considering lower prices benefits the consumer but not the producer. But eventually if the markets work, produce will make up for the increased demand for food. The untapped African agricultural areas should start to beckon with hope, if only African politics followed suit.
Valued Senior Member
Get ready for the American food/farm industry to be divided between 3-4 BIG players. Kiss most of the small and medium farmers good bye. American "collectivization" is about to finish.
african land wont be beconed with hope as you put it because in order for money to be invested in land people want to be sure it wont be taken away like in ZIMBABWE & other places. Noone wants to invest and then have it RE-Nationalized so no Africa ain getting much. The only way to foster investment into agriculture is to create strong property rights laws that are respected and obeyed.
african land wont be beconed with hope as you put it because in order for money to be invested in land people want to be sure it wont be taken away like in ZIMBABWE & other places.
Agriculture is different then other forms of industry, agriculture usually starts from within those nations and then expands. Africaís current exports could grow significantly; I am not talking about any more investment. When export funds grow the country should be able to invest in itself. The only problem in Africa is the political national bourgeoisie class.
Noone wants to invest and then have it RE-Nationalized so no Africa ain getting much.
I disagree of course because you think that foreign investment is necessary to bring up these nations, I disagree.