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Rice Subsidies Too High in Advanced Developing Countries

Rice Subsidies Too High in Advanced Developing Countries

10 April 2015

US - Several key advanced developing countries have ramped up subsidies to their producers of rice, corn, and wheat, according to a new study.

The joint study by the USA Rice Federation and US Wheat Associates found that subsidies in Brazil, China, India, Thailand, and Turkey exceed each country's commitment to the World Trade Organization (WTO).

Representatives of the US organisations said at a media briefing that these issues must be addressed as part of a renewed push to complete the Doha Round of trade negotiations, which are aiming for major reform of the international trading system.

USA Rice Federation Chief Operating Officer Bob Cummings said, "Our joint study showed that these five advanced developing countries have steadily increased subsidies to their producers to the point of being out of compliance with their WTO obligations."

"While we support the WTO and global trade agreements because they work for our members, WTO negotiators must address the trade distortions in today's trading environment if the long-running Doha Round of negotiations is to conclude successfully.

"Several of these countries are also very likely using export subsidies to dispose of surplus production."

The group delivered this same message earlier this year to more than 50 representatives from WTO member countries at meetings in Geneva, Switzerland.

"It's hard to talk about a new trade agreement when countries are ignoring their existing obligations," said Mr Cummings. "It's neither fair nor sustainable."

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