Truth or consequences: why the EU and the USA must reform their subsidies, or pay the price
2005
Folowing the findings by the WTO that US cotton subsidies and EU sugar subsidies are illegal, this paper presents new research detailing a number of other rich country subsidies that, as the paper argues, are also on the wrong side of the law. The paper demonstrates that from butter to orange juice, from tobacco to tomatoes, and from corn to rice the total illegal subsidies highlighted in this paper alone amount to EUR 3.6 bn ($4.2 bn) for the EU and $ 9.3 bn ( EUR 7.9 bn) for the USA in one year alone.The paper also argues that in addition to the strong moral imperative for the trade superpowers to radically reform the way they subsidise agriculture, there is a also a legal requirement for change. The choice lies with the USA and the EU: either they face manifold legal actions that will force reform on a piecemeal basis, or they negotiate reform upfront in the Doha trade round.
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