EU/US Subsidies

October 15, 2002

October 15, 2002

Those of us in farm country have watched in amazement the hypocrisy of the Europeans criticizing our farm subsidies when theirs are twice what ours are. Now that the Congress, at long last, has given President Bush the authority to negotiate trade, President Bush is challenging the Europeans to reduce their farm subsidies and we will do the same.

EU farm Commissioner Franz Fischler has now presented the EU plan -- if you want to call it that. The plan doesn't reduce the 43 billion dollars in European farm subsidies at all. Itjust changes the criteria for awarding payments. Their farmers will get the same amount of money, but now they must meet new standards of animal treatment, food safety and protecting the environment. New standards -- that's all.

After listening to the self-righteous criticism amplified from Europe about our bloated farm bill, is this is all the courage for reform that they can muster? Who can take them seriously?

If that 43 billion dollars continues to flow to the European farmer, he will continue to over produce and Europe will continue to use export subsidies in buying markets around the globe. That's what they have always done. France is the biggest recipient and supporter ofEU farm subsidies. Britain and Germany are ready for reform.

Here in the US the strength in farm grain and oilseed prices will reduce the cost of our farm programs next year. That should quiet some of the clamor for farm program reform here.

Considering the politics and climate here and in Europe, it doesn't look to me like the stars are aligned for major farm program change any time soon. Until next week, I am John Block from Washington.