“trade-distorting subsidies” and Farmers suicides

[Guest guest]

Dear Members Kindly read the following article published in the financial express as I would like to draw the attention of planners for the cause of farmers suicide in cotton belt of Vidharbh area. The real cause is very law prices realised by the cotton growers. In international market, USA’s plan is to destroy economy of Indian farmers by giving 93 % subsidy to US cotton growers. We must oppose USA which try to make our country dependent/poor by “trade-distorting subsidies”. We know so called patriot persons go to USA only to earn money on the cost of our country. They get cheap education/training in our country and give benefit to other developed countries. Actually If USA want boundary less economy (Globalisation), it should allow our uneducated labour force in USA. We must try to use our economists’, scientists’, doctors’, engineers’ brains for our country only. What are we doing for our country is big question for us. Dr.Y.C.Zala Agricultural Economist US tells India to open up for global trade ECONOMY BUREAU Posted online: Wednesday, November 22, 2006 at 0039 hours IST The United States reiterated that resolving the issue of market access was important for the Doha round of talks to be successful. It said that India could lift millions of its people out of poverty by further opening up to global trade. Not budging from his country’s rigid official position, the secretary in the US department of

agriculture, Mike Johanns, while speaking at the Federation of Indian Chambers of Commerce & Industry, said that his country was not the world leader in render cash support to farmers. He alleged that the European Union, followed by Japan, were ahead of the US in the race. Johanns

blamed the developing countries for asking a few million dollars subsidy cut, instead of making sincere efforts for ensuring greater market access, which would benefit the world trade. He said several studies have shown that greater market access can reduce poverty. Commenting on the

G-20 coalition of developing countries, he said Brazil, China, India and South Korea were all strong emerging economies and could be competitive in global trade. The US had large trade deficits with India and other countries, he pointed out. Strongly defending farm practices in the US,

Johanns said that in the US about 60% of farmers did not depend on any subsidy. There was no subsidy for beef, poultry, pork, fruits and vegetables, he said, adding that only 40% of farmers get the benefit of the subsidy regime. In the US, it was the soybean and cotton growers who take the chunk of 93% of the subsidy, he said When pointed out that Indian farmers would be adversely affected by

opening up of markets to the cheap subsidised goods, Johanns said: “Indian textile industry imports cheap subsidised cotton from the US and make huge profits.” Subsequently, when he was told that it was the industry that had prospered on account of cheap imports while the Indian cotton

growers were in distress, Johanns did not have any satisfactory answer. He said that the US farm support programme cannot be accommodated

under Amber Box and Blue Box and therefore there was a need to shift a part of the support to the Green Box “which is not trade-distorting” He said that the US has already committed to a 60% reduction in Amber Box subsidy and two-and-half per cent cut in Blue Box subsidy. All parties to

the WTO negotiations should show flexibility, he said. Send free SMS to your Friends on Mobile from your Messenger. Download Now! http://messenger./download.php