The Congressional WTO Caucus for Farmers and Ranchers, of which Thune is a member, and USTR developed a set of goals of objectives for the Seattle Round. Promoting True Export Competition International trade is as dependent upon fair policies as any aspect of agriculture. Too often, U.S. producers are denied access to foreign markets because of trade barriers intentionally constructed to reduce competition. Agriculture export subsidies have significant and adverse effects on competitive trade in agricultural products. Progress must be made with respect to the EU s practices, as the EU accounts for 85 percent of the total export subsidies of all WTO members.
Export subsidies materialize in different forms.
While only a handful of nations use STEs, each nation is an important trading partner to the U.S. and other WTO members. The Canadian Wheat Board serves as an example. This organization and other STEs compete with private enterprises in the US and other nations. STEs gain an advantage in the market because they are able to mask subsidies that reduce prices and the cost of operations. Tariffs remain excessive on too many agricultural products in too many countries.