Truth or Consequences: Why the EU and the USA must reform their subsidies, or pay the price

Publication date

30 Nov 2005

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The USA and the EU are currently blocking a deal to make trade fair in the Doha Development Round. In the wake of findings by the WTO that US cotton subsidies and EU sugar subsidies are illegal, this paper presents powerful new research detailing a slew of other rich country subsidies of $13bn that are also on the wrong side of the law. In addition to the strong moral imperative for the trade superpowers to radically reform the way they subsidise agriculture, there is a also a legal requirement for change. The choice lies with the USA and the EU: either they face manifold legal actions that will force reform on a piecemeal basis, or they negotiate reform upfront in the Doha trade round.