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Saturday, July 01, 2006



I think these arguments are simply wrong.
For instance, they say that "the EU delivers the vast bulk of that support to dairy farmers not by handing out cash but by maintaining artificially high milk prices, mostly by taxing cheaper foreign imports." In fact,the support comes not only from high, very high, tariffs on imports, which makes import virtually imposible. It is important to acknowledge the high subsidies to storage and to export production surplus.
EU is a big exporter of powder milk, butter, and dairy, and all these exports are subsidyed.
India and poor coutries dont export the products on which they impose high tariffs.
This is valid for milk, sugar, and cotton in the USA.

EU giving subsidies to exports and, at the same time, blocking imports, makes, in my view, statements listed as "myths" 1, 2 and 3 to be true.

The reckoning only for cotton, that poor countries would benefit from the end of subsidies is a consequence that EU is a cotton importer.

Mr Grumpy

Good article, but point 2 seems to me to be splitting hairs. Isn't the end result much the same as if governments slapped a special tax on milk and handed the proceeds out to dairy farmers?

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