EU Critical of ACRE Program

Commission says WTO commitments aren't being taken into account.

European Commission agriculture experts say recent developments in U.S. agriculture policy appear to move in the direction of further trade distortion. A study titled Monitoring Agri-Trade Policy singles out a new scheme in last year's U.S. Farm Bill known as the Average Crop Protection Scheme. The report says the ACRE program fails to take future international trade commitments into account.

The Commission pointed out that the new law seems to have been crafted without future World Trade Organization commitments in mind. If there was a high take-up of the ACRE scheme and prices were to fall, then expenditure could increase sharply above levels seen in recent years and the proposed ceilings for wheat, soybeans and corn could be breached.

The Commission serves as the EU's executive arm and negotiates foreign trade on behalf of the EU's 27 member countries.

TAGS: Soybean
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish