American farm groups are united in their demand that the United States government retaliate against the European Union this year for its food trade protectionism and subsidies, even if it could launch a new trade war, says a Washington-based farm lobbyist.
John Keeling, farm policy specialist for the American Farm Bureau, said in an interview Canadian policies also will be a target as Americans prepare to throw their weight around.
“I think you will see new aggressiveness by us on things like dairy and poultry protection in Canada,” he said. “You are going to see much more focus by us on state trading enterprises (like the Canadian Wheat Board).”
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Farmers talk tough
Keeling said American farmers are demanding a tougher trade stand by their government because they believe they are being weaned off government support by the new farm bill and they will demand the rest of the world follow suit.
“The U.S. has set a new course in farm policy and federal support that probably means after seven years there is a fifty-fifty chance there will be no direct income supports to farmers,” he said. “The rest of the world may not believe our new-found (image of) purity is justified but that is the way it is seen here and that is how it will play out.”
The first target will be the European Union. It could signal the renewal of the farm products trade war that the 1994 world trade agreement was supposed to end.
The EU has started to use export subsidies again and continues to support a ban on imports of meat from hormone-treated animals.
Keeling said the meat ban is not justified by science and must be fought. It is being challenged before the World Trade Organization.
“We are reaching a saturation point in our ability to be cheerful about the European Community’s continued foot dragging and engaging in trading practices that are so harmful,” he said.
“Farm groups are unanimous in their belief that enough is enough. I think there is going to be that same kind of commitment in Congress and in the administration.”
Keeling said he attended a speech by U.S. agriculture secretary Dan Glickman during which the threat of retaliation was clear. The administration, which took office this week when president Bill Clinton was sworn in for a second term, plans to be tough with the Europeans.
“He (Glickman) said he hopes it does not get to the point where we have to do something, but we will if we have to,” said Keeling. “I would say the Export Enhancement Program would be one logical weapon.”
