Lately I have been focusing on how U.S. Food/Farm policy effects people living inside the United States. But as we all know, we live today in the age of globalization and through trade we are now dependent on other countries for our livelihood. In the case of U.S. subsidies to farmers it can be debated in circles about whether they are helping or hurting the American economy. What is certain though is that U.S. subsidies are severely harming the economies of the world. Cheap subsidized corn, cotton, rice and other goods flood the foreign market and make it impossible for local farmers to compete with the artificially low prices of U.S. goods. This is a problem that various groups have red-flagged over the past decade, but rarely has been paid any attention by legislature or news corporations. With the recent devastation in Haiti U.S. aid has been flooding in, but some have stopped to question how Haiti got into such a bad economic state to begin with.
In a 2006 report, the Cato Institute, a nonprofit Washington-based research foundation, called rice "one of the most heavily supported commodities in the United States," and argued that several countries including Haiti "could all plausibly claim that the U.S. rice program has driven down global prices to the detriment of their citizens."
"Until the 1980s," the Washington Post recently reported, "Haiti grew almost all the rice that it ate. But in 1986, under pressure from foreign governments, including the United States, Haiti removed its tariff on imported rice."
http://www.cnn.com/2010/WORLD/americas/01/27/us.haiti.rice/index.html?iref=allsearch
A common theme I have found when researching US trade relations in third world countries is that we tend to bully countries into trading with us and then ruin their local economies with our cheap commodities, most often agricultural commodities. This is not an event singular to Haiti. In Mexico the same thing happened with imports of our subsidized corn and in Africa with subsidized cotton. America is simply not playing by the rules and the World Trade Organization has called them out on it on numerous occasions.
“The global trading system depends on countries obeying rules and submitting to orderly dispute resolution,” said Kripke. “Thus far, the US has ignored the ruling of the WTO adjudication and continues large subsidies for cotton production. If the US continues this way, the integrity of the multilateral trade system is at stake.”
http://www.oxfam.org/en/pressroom/pressrelease/2009-08-31/oxfam-reaction-wto-judgement-us-cotton-subsidies
How far are we wiling to go as a country to continue down this route of unfair trade. How many externalities are we going to create with third world country to maintain our system of industrial agriculture in our country?
As a country we have not been playing fair when it comes to trading with other countries. Our nation gains power b y cheating other countries by obtain lower price products than those being made domestically. This leaves other nations standing in a really bad economical status because they are exporting everything they are producing at a cheap price. If we continue to be so greedy one day a nation will become aware of the unfairness the US is playing in the world trade and will eventually leave us standing in a bad economic crisis which we will never be able to recuperate from. (E.A)
ReplyDeleteAll powers do this, not that its right. China does for oil in africa just as europe does it for diamonds. How do you think countries in the middle east got all this oil infrastructure? Furthermore, democracies focusing on free trade use the hegemon system, where the US is the main hegemon and all other supplies it for access to the bigger hegemon. This system has always been used by powerful countries, and I am fairly sure it always will be. Haiti is not the only country that has experienced this, but no one is talking about small asian countries who we do the same to for our national interests. We are a nation that gives a lot of aid and support to poorer countries, and generally try to do the right thing, but it is not beneath us to do things like this in order to protect american interests.
ReplyDeleteAlthough we might be hurting small farms in other countries from subsides, the country is still getting the food it needs at a cheaper price. The smaller countries should try to specialize in other crops that are not being subsidized in other countries. Some crops may not be suitable for certain climates of the world, but I am sure there is some cash crop that could be grown and sold for a profit. (A)
ReplyDeleteI'm going to play devil's advocate and say that I think the U.S is just being the world power we are. The United States clearly has market power and we use it to our advantage. If you had a hammer, would you hit nails into a board with a rock? No, you would use the hammer to your benefit and reap the rewards. Yes smaller countries have a hard time competing but why should the U.S slow down to their pace? You have to cause some externalities to live the privileged life we do in america. A, E
ReplyDeleteI more or less agree with nick. Countries around the world subsidize their agricultural industries, and the U.S has every right to subsidize our farms as well. However, I believe that the government should use more discretion in its farm subsidies. Namely, it should stop subsidizing the large commercial farms, which are capable of being profitable without the subsidies. Ending subsidies to these large farms, moreover, would help to relieve pressure on farmers in countries like Haiti, ending an unfair advantage that U.S exports have over local farmers in other countries.
ReplyDeleteI agree with Nick as well. Why should we slow down or do any less than our best just because other countries can't keep up with us. I mean perhaps we could slow down or find ways to make the market somewhat more fair to other countries. But I don't think the U.S. is wrong by doing what they're doing. A
ReplyDeleteYes, yes, we are all good capitalists and all enjoy taking as much money as possible, whenever possible. Sure. But there has to be a line somewhere. At a certain point, Person A's pain has to outweigh Person B's benefit. Do we really need to destroy an economy, not to mention individuals' lives just to sell some rice? A
ReplyDeleteThis article really interests me. I think that the U.S. can often be hypocritical. They see no problem with and are proud for calling out others for being being unfair or supporting inequalities. At the same time though, the thirst for power and money seems to overpower our instincts and knowledge of what is just. We try to promote ourselves as a country of equality, but alot of our international practices do not reflect this.
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