Yesterday was the expiration date of the World Trade Organization’s “peace clause.” The clause provided immunity from the WTO’s punishments and procedures for agricultural subsidies. The Economist analyzes what this means for future trade talks. To understand the massive inefficiencies of these subsidies, consider this:
There are certainly a lot of subsidies to shoot at. The OECD, a club of rich nations, reckons that the agricultural subsidies of its members cost consumers and taxpayers about $230 billion in 2001 alone. The European Union, the United States and Japan were to blame for about 80% of those transfers. The typical milk producer in the OECD makes half its money from selling milk, and the other half from milking its government. Rice and sugar producers do the same.
(posted by Daniel Drezner).
The Dish 