U.S. trade negotiatiors, for the first time, agree to cut farm subsidies

As part of international trade negotiations, the United States has offered to lower the ceiling for maximum agricultural subsidies for the first time, reports Reuters. By dropping the ceiling from its current level of about $45 billion to less than $17 billion, the United States looks to lead the way for its trade partners to follow suit — the key for any new global trade agreement to work. "The U.S. will lead, but others must step up to ensure the strongest possible market access outcomes implied by the texts in agriculture, manufacturing and in the services negotiations," said a spokesman for U.S. Trade Representative Susan Schwab.

This set of trade talks, called the Doha round, was "launched nearly six years ago to boost confidence in the world economy, increase trade flows and help developing nations export their way out of poverty," Reuters writes. The offer to reduce subsidies comes at a time when the world food markets are booming, but subsidies remain a key domestic political issue in the United States. (Read more)