Trade and Corporations: free trade as strategic trade

Truss disappointed with US subsidies deals
CANBERRA, Dec 12 AAP|Published: Wednesday December 12, 7:49 AM

http://www.theage.com.au/breaking/

  The United States will not cut billions of dollars in farm subsidies despite
a plea in Washington from a high-level group of Australians, including
Agriculture Minister Warren Truss.

  And in a further blow to Australia, it appeared the White House had done a
deal with Congress to
exclude key commodities such as sugar and citrus in any free trade agreements.

  Mr Truss, in Washington to lobby for cuts to the $A340 billion financial
support package for US farmers, said the deal took US farming to a new low. 

  "From the point of view of our delegation, we have therefore been, I guess,
disappointed, that it seems that the US will indeed put in place a significant
farm subsidy program for the years ahead," Mr Truss told ABC radio.

  The government was especially concerned with the clear intent of the farm
lobby to seek to entrench a mentality of farm subsidies in the USA, Mr Truss 
said.

  "It is obvious, that the US, which was once proudly boasted to be the most
efficient farmers in the world, have now degenerated to a situation where US
farmers are dependent upon the taxpayers for around half their income," he said.

  Yesterday US farmers said Australia's bid for the US to cut support for
American farmers had as much chance at success as snow falling in summer.

  American National Farmers Union president Leland Swenson (Leland Swenson)
said the US would comply with world trade rules but its prime concern was to
look after its farmers.

  Today Mr Truss said some of the US deals done to secure votes to ensure the
subsidies proposal would become law meant it would be almost impossible to
include key commodities in any free trade agreement with Australia.

  "Things like textiles and steel have been identified as areas where
particular procedures will have to be followed before any administration will
be able to negotiate arrangements," Mr Truss said.

  The laws are to be debated in the US Senate this week.