GENEVA— A new US Farm Bill increasing support
for American farmers has come under attack again from countries
who say it calls into question US willingness to negotiate a
trade deal, a top trade official said on Wednesday.
The US slowdown, the weak dollar and US
security measures also prompted concern at a review of American
trade policy this week, said Clem Boonekamp, director of trade
policy reviews at the World Trade Organization (WTO).
But the openness and efficiency of the US
economy and its preferential treatment of imports from
developing African countries won praise, he told a news
conference.
WTO members told US officials the new farm
bill was a missed opportunity to reduce support to US
agriculture.
"They were worried — and that’s not too
exaggerated a word — that it would prevent the US from playing
the role they expect of it in the agriculture negotiations,"
Boonekamp said.
Critics say high US farm subsidies distort
the world trading system and squeeze poor-country farmers out of
their markets, as well as putting a burden on US taxpayers and
giving incentives to US farm businesses that do not need them.
Cuts in US subsidies are one goal of the
WTO’s Doha round, now in its seventh year. US officials said the
farm bill did not represent the US offer in the Doha talks, and
could be amended if the negotiations result in a deal.
The US administration has made clear it is
willing to cut subsidies but wants developing countries to open
up their markets for industrial goods by cutting tariffs.
Developed and developing countries are deeply
divided over the extent to which each should cut tariffs.
US WTO ambassador Peter Allgeier told the
review US tariffs averaged 3.5 percent under WTO rules, and were
as little as 1.3 percent in practice when preferences such as
those for African countries were taken into account.
But Brazil said it faced an average tariff of
about 21 percent on its imports into the United States, because
of tariff "peaks" on certain products, while the duty on US
goods coming into Brazil averaged only 11 percent, Boonekamp
said.
US deputy WTO representative David Shark told
the review that Washington was willing to eliminate these tariff
peaks on industrial goods, but expected others to do so too, he
said.
US officials did not respond to criticism
from China that the weak dollar was hurting developing countries
by disrupting their foreign trade and devaluing their reserves,
other than to note that the exchange rate was set by market
forces.
They said plans to scan all containers
entering America, which other WTO members such as the European
Union say may raise costs and slow down trade, would make trade
more efficient.
US officials said rising exports were tempering the slowdown
in the world’s biggest economy, while a stimulus package and
monetary easing should make growth continue modestly for the
next two quarters and pick up at the end of the year.
—Reuters