FAPRI study shows movement must occur at Hong Kong WTO Meeting
Senate Agriculture Committee Chairman Saxby Chambliss (R-GA), said that substantive progress - not the myth of blaming world poverty and suffering on U.S. cotton, domestic support and food aid - will provide ambition and opportunity for developed and developing countries alike from the WTO/Hong Kong Ministerial. Chambliss issued the following statement Friday morning:
"The importance of an ambitious outcome in the Doha Round could not be better illustrated than by results released from the Food and Agriculture Research Institute (FAPRI). At my request, FAPRI analyzed the possible impacts of the October 2005 U.S. proposal in the WTO agriculture negotiations, helping us understand the possible implications of the draft.
"The results clearly indicate substantial improvements in market access and significant reductions in applied tariffs are necessary to justify lower levels of trade-distorting domestic support. The results also further illustrate that the United States can provide equivalent compensation to farmers and ranchers in the United States while also lowering net outlays by the government.
"The study further illustrates strong growth in commodity prices occurs through lower tariffs that spur increased demand. I am encouraged by these results, and the study will provide a useful tool as the negotiations progress. The study will also help determine when an agreement is not in the best interests of U.S. agriculture. I hope the European Union and others who do not believe an ambitious outcome is necessary take a hard look at the analysis and understand that the U.S. proposal is the most positive way to help developing economies lift themselves out of poverty while also increasing opportunities for farmers and ranchers in Europe and the United States."