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Bush raises wheat subsidies, warns EC
HUMBOLDT. South Dakota Sept 3: President George Bush announced Wednesday dial the United States would sharply Increase US wheat subsidies to compete with the European Community, which it accuses of unfair competition. reports AFP.
Bush asked the agricultural department to subsidise the sale of 30 million tonnes of wheat to 28 countries between now and June 1993. which would sharply accelerate the US export enhancement programme. the White House said
The subsidies, on top of 914 million dollar in subsidies since June, would total 1.1 billion dollar on sales worth three billion dollar, said a senior US official, who called the move a very aggressive action.
Bush said it would be the largest quantity of US what ever exported at once under the Export Enhancement Programme (EEP).
We want free trade but we must insist on fair trade. Bush said. In a world of open trade the US would be the premier supplier of wheat to world markets, and that's why we are committed to reducing subsl dies worldwide.
My announcement today should leave no doubt, with heavy EC subsidies continuing this EEP programme is vital and we will use it as necessary. he said I'm putting foreign governments on notice right here today In South Dakota.
According to the White
House. European governments subsidise wheat exports at about 125 dollar per tonne, while the United States subsidises at 40 dollar per tonne
Five countries will benefit from the US export programme for the first time — South Africa. India. Pakistan. Poland and Romania
Bush made the announce ment during a campaign visit to a form In Humboldt. In rural
South Dakota, where he ad dressed a partisan crowd of 200 farmers
In addition, the White House announced Wednesday that Bush was releasing 755 million dollar to offset losses suffered by US farmers as a result of bad weather notably in hurricane-ravaged Florida and Louisiana.
A senior US official said
Bush’s decision to aid farmers two months before the November 3 election was not driven by political motives
But Bush a<-cuscd his demo crutlc rival. Arkansas Governor Bill Clinton, of being held hostage by protectionists
If Clinton gets infected with that anti-trade strain from the protectionist crowd running around with. It will be the American farmci who catches
pneumonia and South Dakota that s going to get might sick, he saxi
The US official said Wash inguu* bad no Intention of a starting a trade war with the EC but felt obliged to compen sate for distortions tn trade tn the absence of agreement in the current round of talks under the General Agreement on Tariffs and Trade (GATT)
The main stumbling block to agreement is a US EC di* pute over agricultural subsl dies
In the absence of an agree ment. the President Is com mined to using tools st his disposal to insure that US pro ducer* sre able to compete I lie White House »ald
This announcement signal* to the EC the scope of the US resolve and encourages move ment toward completing In ternational trade reform, it said
'll provide* clear evidence of the president » delermlna tton that the US will remain competitive '
Farmer* pleaded with new policy
AP reports from Washing ton Wheat farmers were liappy to hear that President Bush Is spending one billion dollar from the US government * Ex port Enhancement Programme to push sales of American wheat abroad It's money they d been watting for
"It's definitely good news said Vince Peterson of US Wheal Associates, a Washington based office that represents wheat farmers in international marketing.
But he said the announce ment Bush made Wednesday during a campaign stop tn South Dakota "would have been better placed for the Industry if it had been a month or two ago