The Chief Agricultural Negotiator for the U.S. is attacking both China and India for blowing past their World Trade Organization spending limits on farm subsidies that distort trade.
“We think China has done in excess of $100 billion more in subsidies to its farmers than it was allowed to do,” Gregg Doug said at the American Sugar Alliance’s International Sweetener Symposium in Michigan. Politico says he also accused India of vastly exceeding its subsidy limits on rice and wheat, while also mentioning the country’s recent moves to increase subsidies to its sugar producers as a cushion against a drop in world prices.
“I can’t think of a commodity that’s more distorted,” Doud said to symposium attendees. “If you think there’s a problem in steel, take a long look at the sugar market.”
Doud also tried to allay the concerns about the Trump Administration’s trade policy, which has had a negative impact on agricultural markets for the past year and a half. He says the administration is working to wrap up talks on the North American Free Trade Agreement quickly while looking for new export opportunities in Canada, Japan, and Europe.