US diplomats have come under renewed scrutiny over the payment of subsidies to its food producers.
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As the World Trade Organisation’s (WTO) Doha Development Round heads towards completion, US trade partners are demanding detailed information on the subsidies, so they can be categorized in the final Doha deal – which will cap subsidies, according to how they are defined.
The US commonly claims there should be few limits on its subsidies as many, it claims, are flat-rate payments, allegedly not distorting global markets.
In a meeting of the WTO agriculture committee on Wednesday (21 November), US diplomats replied to questions from Australia, Canada, the EU, Japan and New Zealand on its subsidies.
Washington argued that its “counter-cyclical payments”, which are based on past production, should not be limited, because they do not require the production of specific foodstuffs.
