Implications of the shift in United States farm policy

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Implications of the shift in United States farm policy

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This article sets out to describe the main features of the new farm legislation in the United States, assess the extent to which it conforms to World Trade Organization (WTO); rules, and provide a preliminary assessment of its impact on Latin America. The article first looks at the new United States Farm Security and Rural Investment Act of 2002, identifying the different mechanisms used to support the country's farm producers. It then analyses that Act, referred to hereinafter as the 2002 Farm Act, in the light of the rules established and the commitments made in the Uruguay Round of the General Agreement on Tariffs and Trade (GATT);. This is followed by an analysis of the possible impact of the new law on Latin American agriculture. Lastly, reference is made to recent developments in multilateral trade negotiations and the way they relate to the 2002 Farm Act.

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