AFBF Finds too Much 'Wiggle Room' in WTO Framework

December 3, 1999

American Farm Bureau Federation President Dean Kleckner says the framework agreement for World Trade Organization negotiations "may contain too much wiggle room" in the agricultural provisions. Some provisions address issues important to U.S. farmers, he adds, but interpretations by other countries could undermine the impact.

Kleckner says two concepts have dominated the agricultural negotiations: the elimination of export subsidies and multifunctionality. The latest draft agreement calls for moving "in the direction of progressive elimination of export subsidies," says Kleckner, but the reality "is that export subsidies won't be eliminated in this round. It's clear that's where the European Union drew the line in the sand."

U.S. farmers "don't believe that `reductions in export subsidies' goes far enough," he continued. "Anything less than complete elimination is unacceptable. Even at reduced levels, America's farmers cannot compete against foreign treasuries that have used export subsidies to lock our farm products out of important markets."

Kleckner says he is "pleased" the term multifunctionality no longer appears in the text. However, he says he's concerned that the "spirit of that ill-conceived concept remains under discussion. Some countries have expanded the list of what is covered under the new language."