The Impact of Agricultural Subsidies Essay

1952 Words Nov 23rd, 2010 8 Pages
The Impact of Agricultural Subsidies

The Impact of Agricultural Subsidies Many countries started to negotiate Doha Development Agenda under the World Trade Organization (WTO) in 2001. In July 2004, members in WTO reached agreement to make a reform in agriculture. One of focused things is to cut agricultural subsidies both in developed countries and developing countries. In recent several years, millions of people from both developed and developing countries give in response to eliminate agricultural subsidies. Agricultural subsidies should be eliminated because they distort free trade, damage the local environment.

The meaning of agricultural subsidies "Agricultural subsidies, financial assistance to farmers through
…show more content…
According to Statistics Canada (2006), "Quebec farmers received $725 million in direct payments in 2004; $722 million in 2005; and $838 million in 2006." The farmers in Quebec get a lot of money from government, so they become more reliant on government. The result is that farmers become lazy. Farmers are less focused on creation, productiveness and innovation.

Trade: International market Agricultural subsidies also affect prices of products on international market. "The subsidies impede the sale of the agricultural products of developing countries in the markets of the developed world"( Ferrari, C. A., & Novoa, C., 2004 p. 20) The agricultural products in subsidized countries are sold on international market, which has a great impact on farmers in developing countries. "Cotton is the main agricultural export foe some of the world's poorest countries." (Beingessner, P. 2003 p. 24) The cotton in Mali is as a good example to show this phenomenon. Mali is a African country, which is one of the top 10 poorest countries in the world. Cotton production feeds one-third of people in Mali. A normal farmer could get income about $1000 per year because of selling cotton. Not only farmers get benefits from cotton, but also the whole economy of Mali. The incomes from exporting cotton offer money for health care, education and development. However, in recent years, subsidized countries dump production into the international

Related Documents