ag subsidies

The big sticking point of the upcoming Doha Round WTO talks is almost certainly going to be agriculture subsidies and quotas. Namely, the European Union won't want to get rid of the policies that protect their farmers. The EU's agriculture subsidies essentially amount to a Europeanization of what once was French policy.

And it's really pretty bad policy. According to The Economist, CAP (Ag subsidies) are 40% of the EU's budget. This, despite the fact that farmers make up only 2% of the workforce. Subsidies make up an average of 90% of a farmer's pre-tax income. Hmm, sounds like terrible policy, kind of like in the United States.

Unfortunately, like in the United States, Euro farm subsidies don't appear to be going anywhere. It's one of the principle demands of the French, which is the second most important member of the EU. The Germans bankroll the thing and get to determine all the monetary policy; the French pay a fair amount into the cash register, agree to get along with the Germans, and get their agriculture policy through.

It's not like the US will be in any position to get high and mighty at the WTO. Ethanol. Oh, sure we passed CAFTA, but why are there still terribly costly sugar quotas? Farm subsidies remain one of the worst worldwide policy disasters in the developing world. Maybe if the Netherlands, Malta or some other country with no farming to speak of ascends to hegemony, they can kick the crap out of us and set the world straight.