Truss welcomes new research paper on US Farm Bill reform

The Australian Government Minister for Trade, Warren Truss, today welcomed the release by US policy institute, Informa Economics, of its paper “Looking Forward: a more market-oriented 2007 Farm Act”.

The paper, commissioned by Australia, was launched in Washington and outlines market-oriented reform options for US agriculture. The United States Congress has begun its deliberations on the 2007 Farm Bill which is expected to be finalised later this year.

“The Informa paper highlights that lower levels of support, particularly in the form of trade distorting subsidies, would actually do more for the competitiveness of US farmers now and into the future,” Mr Truss said.

“The challenge facing US policy makers is to come up with a new Farm Bill that helps both the US and world agriculture to realise its full potential.

“It is not easy, but Australia’s experience shows that reform ultimately brings with it substantial benefits.

“Shifting to lower subsidies and more market-oriented farm policies would also increase pressure on other World Trade Organization members to respond with improved offers in the Doha Round.

“To secure an ambitious outcome in the Doha Round this year, the United States needs to show leadership by making an improved offer to significantly reduce trade-distorting subsidies provided to its farmers. Equally, the European Union needs to put on the negotiating table a new offer which delivers new commercially meaningful market access outcomes,” Mr Truss said.

Informa Economics is a world leader in broad-based agricultural and commodity market research and analysis. The Australian Government commissioned the Informa paper as an independent contribution to the US Farm Bill debate.

An electronic version of the paper is available at: www.usa.embassy.gov.au

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555