The United States and Canada are likely to head to war over U.S. farm subsidies. This wont’ be your typical war with tanks and planes but will be fought in the trade arena. Canada is complaining that the United States is distorting the price of farm products, specifically corn, with its $9 billion subsidy. Canada isn’t going to sit idly by and watch its farmers get hurt. As with the recent fight over lumber the Canadian government is likely to take on farm subsidies because they claim it damages their farmers. The strategy at this point is to fight these subsidies before a Democrat controlled government takes power. To the Canadians the Democrats are likely to maintain or increase such subsidies and now is the time to take on the powers. The International Trade and Agriculture ministers David Emerson and Chuck Strahl released a joint statement that the subsidies allowed in the U.S. Farm Bill are creating an “unfair market advantage” for the United States which hurts Canadian farmers. The prices of corn are suppressed and Canadian farmers cannot receive adequate pay for their efforts. The issue of farm subsidies which allow the government to inject $15 billion to $20 billion dollars a year in farming aid is only the tip of the iceberg. It is expected that Canada is going to use this issue as a spearhead in a larger campaign to gain market advantages. At current it is expected that the Canadians desire to have the case arbitrated at the World Trade Organization. Murad Ali is a two-time book author, works in human resource management, and a Ph.D. candidate. Visit for more articles http://www.thenewbusinessworld.blogspot.com
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Trade, u.s., Canada, corn, farm bill, wto,
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