Oxfam hails EU farm subsidies offer

A European Union offer to stop subsidising farm exports was hailed this afternoon as a boost for the world’s poor.

Aid agency Oxfam said ending the long-standing system – a cornerstone until now of EU agriculture policy – would not only revitalise stalled world trade negotiations, but give less-developed nations a chance to compete once more in their own markets.

The subsidy system has been under fire for years as a multi-billion euro prop enabling EU farmers to dump cheap produce at artificially-low prices.

The European Commission spends about €45bn a year on the policy - but today EU trade Commissioner Pascal Lamy said Europe was ready to abandon it altogether as long as other World Trade Organisation (WTO) nations, chiefly American, Canada and Australia, do too.

The EU’s offer came ahead of a WTO meeting in Paris later this week, holding out the prospect of much more flexibility in the current trade talks if all industrialised countries fall in line.

Jo Leadbeater, head of advocacy in Oxfam’s Brussels Office said: “A genuine offer to eliminate all export subsidies would be cause for great celebration. The European Union must make this pledge a reality as soon as possible, and encourage the US to follow suit.

“We want to see a definite date set for the elimination of export subsidies. This could give a real boost to stalled WTO negotiations and be a big step towards making trade work for the poor.”

She went on: “Export subsidies exacerbate poverty in the developing world by enabling EU farmers to dump their excess produce overseas at prices that undercut local producers.

“Today’s announcement is proof that developing country assertiveness, backed by pressure from civil society, can have a significant impact“.

Oxfam has been calling for the elimination of export subsidies for over two years as part of its “make trade fair” campaign.