US action major blow to world trade deal

PROSPECTS of a world trade deal have been dealt a blow by the US Congress and Senate, which paid little attention to the trade negotiations by overwhelmingly supporting a $285 billion Farm Bill which experts believe has increased trade-distorting supports on 17 out of 25 commodities policed by the World Trade Organisation.

“Trade partners are going to be incensed, and we would expect them to protest in every way they can,” admitted Chuck Conner, the deputy US agriculture secretary.

Bruce Knight, US Department of Agriculture Under Secretary for Marketing and Regulatory Programs, said, “We could have adjusted the farm bill so it was more WTO compliant and better corrected to reduce the deficit.”