Mumbai:
The US government may be willing to offer additional
cuts in farm subsidies in a bid to expand markets for
the country's farm goods although US farm groups are
likely to oppose Washington's moves.
US
negotiators in world trade talks might consider capping
farm supports far below their current offer of $22.5
billion, perhaps even less than $15 billion, industry
and private sector sources said, adding that the farm
groups are certain to fight any such trade deal unless
they get significant market access in return.
Exports
account for almost a third of US farmers' cash receipts.
Almost 40 per cent of soybeans, 20 per cent of corn
and 60 percent of cattle hides from US are shipped abroad.
Finding
new markets for these goods, especially in emerging
markets in Asia, is key in rallying US support for the
Doha Round of world trade talks.
Washington
has also put itself in a tight corner by telling farmers
that it will sacrifice subsidies only for larger gains
in tariff cuts from other countries.
That
strategy is facing opposition from the G33 bloc of developing
countries, led by India who demand protection to 20
per cent of tariff lines from full cuts against more
than the five lines the US would like to see.
Europe,
meanwhile, wants to shelter 8 per cent of its tariff
lines against the US view that one percent would do.
US
negotiators could show calculated flexibility on the
India's demands and the G33 nations, but less with Europe
for the more meaningful trade flows for US is not in
Europe, but in the booming emerging market economies.
US
negotiators would also like to protect products like
sugar, cotton, rice and butter from import competition.
Farm groups, however, shy away from specific estimates
for a US bottom line on fresh subsidy cuts.
The
question then is how much real world access is likely
to emerge from the negotiations.
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