Agricultural subsidy is often being blamed for the distortions in the global trade with heavily subsidized western farmers offering many commodities at ridiculously low prices in the international market affecting the exports of third world countries. The WTO negotiations for a truly free world trade without barriers are stalemated because of the reluctance of developed nations to withdraw the subsidy regime to provide a level playing field for all the countries for equitable and fair system of trading that transcends national boundaries. The relative insensitivity on the part of many rich countries to this issue is reflected by continuing plans to protect their farmers through more subsidies to overcome the economic recession.
The butter 'mountains' and milk powder 'mounts' that characterized the European agricultural scenario in the last millennium are set to return if the latest proposal by EU for extending economic protection to the dairy producers in the constituent countries does materialize. "Europe's agriculture commissioner today bent to pressure from a majority of EU states and agreed to create a €280 million fund to be used to help dairy farmers cope with the impact of low prices".
Waiving of the rules for direct national subsidy enabling the individual governments to give cash relief of Euro 15000 to each dairy farmer is a move fraught with some serious implications. If these proposals are put into practice, over production of butter and milk powder is a sure possibility and such an action will further destabilize world trade in dairy products for decades to come with grave consequences to the fate of third world countries. Flooding these countries with cheap dairy products is bound to depress market prices in the importing countries and local producers will be the sufferers due to non-remunerative prices for their product. WTO must step in to stop this "atrocity"!
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
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