GLOBAL SUBSIDIES INITIATIVE
Subsidy WatchIssue 20, February 2008
Commentary
News
January saw the debate over biofuel policies in the European Union intensify, including over how (and if) biofuels should be supported by governments. At the centre of the discussion was whether to continue mandating biofuels as a fuel blend and whether to establish sustainability requirements on biofuels.
On 1 January 2008, the governments of Mexico and the United States removed all remaining cross-border tariffs on agricultural products between the two countries. The move, required under the North American Free Trade Agreement (NAFTA), has been heavily criticized by agriculture interests on both sides of the border. Mexican farmers have protested the loudest, arguing that without the tariffs they cannot compete with their American counterparts given the disproportionate subsidies that the United States provides to its farmers.
Studies
-
U.S. industry group attacks China’s subsidies to steel
A report released in January by a US steel industry group attempts to build the case that China's subsidies to its steel industry are in violation of its WTO commitments.
China's steel production and consumption has expanded rapidly in recent years; in 2005 China become a net steel importer, a development directly correlated with generous energy subsidies that benefit the steel industry, according to the report.
-
OECD analyzes export subsidies in the services field
An OECD working paper presents an exploratory analysis of export subsidies in the services field. The report, while not generating accurate measures of the extent and effects of export subsidies for services, provides evidence that these measures are used by many countries in the developed and developing worlds to support a wide range of services sectors.
-
German paper recommends bio-energy policy for reducing greenhouse gases
A paper from a scientific advisory board to the German ministry of agriculture examines bio-energy policy in Germany, and recommends certain forms of bio-gas as the most efficient ways to reduce greenhouse gases. According to the paper, the forms of bio-energy that have received the most attention from policy makers in Germany have been liquid biofuels. However, these are relatively costly at between €150 and €300 per tonne of CO2-equivalent avoided for corn-based ethanol.
-
Think-tank estimates Canadian subsidies in 2004
A think-tank has estimated subsidies to Canadian businesses in 2004, and found that they more than doubled since 1995.
The Fraser Institute calculates that some C$19 billion in subsidies was paid to businesses in 2004 (which was the last year for which data is available), up from C$ 10.3 billion in 1995. Between 1995 and 2004 an estimated C$ 144 billion flowed from taxpayers to private business.
-
Report says industrialized livestock sector is a winner in US farm policy
A report from the Global Development and Environment Institute of Tufts University argues that one of the major beneficiaries from recent changes to U.S. farm policy has been the industrialized livestock sector.
The study comes at a time when rising commodity prices, due in part to demand for biofuels, has drawn complaints from livestock producers.
www.globalsubsidies.org
- Email:
- info [at] globalsubsidies [dot] org
- Tel:
- +41 22 917 88 48
- Fax:
- +41 22 917 80 54
9, Chemin de Balexert, office 5-53
1219 Châtelaine, Geneva
Switzerland
website by EthicalStudios.com
The European Union fisheries sector is firmly part of the global fisheries crisis. In Europe more than 80% of known resources are over-fished, while overseas EU fleets have done more than their share to bring commercial productivity of the oceans to an all-time low. About three quarters of the world's major fisheries, including Atlantic cod or bluefin tuna, are overexploited, fully exploited, or recovering from depletion. According to estimates provided by the European Commission, the European fleet operates with about 40% overcapacity.