Chris Cantell Discusses World News: US farm cuts offer at WTO not enough for developing nations by Radka Konkolova

After the World War II, when there was absence of some products, especially those needed for every day life in some countries, another states wanted to provide them some aid. So they started to transport necessary goods, as foods for example. Then they came with the idea of liberalization of world trade. So officials from several countries met in order to predict cancel some restrictions and loose movement of some goods. The first round of negotiations had taken place in Geneva a there were another seven such rounds together. Every two years the Chancellors of the Exchequer meet together and bargain the possibility of another liberalisation. Since that time there have been movement of thousands of goods liberalised, what has helped the development of international trade and free trade areas all over the world. This is good also for people (consumers) and for a conservation of good relations as well. For statetreasury it mans lower revenues from duty. But producers may think it is unfair for them because they are handicaped then. When there is no liberalization, producers, mainly farmers, get subsidies from the treasury and they are not constraint to produce with minimum costs. But when there is liberalization, they have to use sources more economical.

Very interesting is that at first the US and Great Britain denied the negotiations and were against the liberalisation. But recently they are initiators of other liberalisations of goods and services. Thanks to this, goods are cheaper and countries can support developing and underdeveloped countries of the world. The last one bargaining was taking place in Geneva this Tuesday and it should be the end of the bargaining started in 2001 in Doha .

The ministers of some 35 countries which are members of WTO were bargaining about the level of subsidies for agriculture. US admitted decline these subsidies for their producers, but officials of some countries, especially those from Brasilia, claim this is not enough. American products probably will be little bit more expensive but on the other hand, other products from other parts of the world would stay at the same price level, so they will be competitive to those from the States. This could help developing countries to get higher profits and this can improve the level of the country.

Anyway, making the right decision is not as easy as it can seem, because there will be always someone who will be complaining. Either producer who will get lower subsidies and earn not high profit, or countries that is handicapped in comparison with home producers. So the right way is somewhere amid. But probably it will be relatively difficult to find it…

related story: http://news.yahoo.com/s/afp/20080722/bs_afp/wtotradetalks_080722195447;_ylt=Amv_zRux28EGaRv_N69CLy2s0NUE

by Radka Konkolova for PocketNews (http://pocketnews.tv)

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posted by Lucia Adamova