'US not to cut agriculture subsidies unilaterally'

United States is prepared to reduce its tariffs on different products including textile, if other countries with high tariff rates also do the same. Ambassador Peter F Allgeier, Deputy United States Trade Representative, expressed these views in an interview with Business Recorder, here on Thursday.
He is in the city to attend the Cairns Group Ministerial Meeting that concluded on April 18. During the interview, the ambassador Allgeier was asked why the US has levied high tariff on textile product of Pakistan, when Bangladesh enjoys special treatment. He admitted that US tariffs on textile were high for everyone, including Pakistan unlike Bangladesh and African countries, to whom special incentives are given.
"However, we have agreed on a formula that reduces our tariff, on the higher side; there would be the deepest cut in the highest tariffs, which also includes textile. Now we can do that if other countries follow the same suit, and in the process, the difference would evaporate," he said.
According to him, Pakistani Commerce Minister Humayun Akhtar Khan has been strongly advocating for cut in the US tariffs for every country and the US agrees with him, but again, the US would only do so if other countries with high tariff also respond in the same tune.
On Cairns Group, Allgeier averred that it was a group of countries that believed in free trade in agriculture and was striving for removal of subsidies on agriculture. He said, although the US was not a member of the Cairns Group, as it gave subsidies on agriculture, but it generally favoured opening of agriculture market and ending the agri subsidies. "This Cairns Group Ministerial Meeting is very important that is devising ways to open agri-markets around the world and we support the meeting and the Group," he added.
When asked about the contradiction in the US stand in extending support to the Cairns Group, while providing subsidies to its agriculture sector, and in the process blocking its agri-market to the rest of the world. He disagreed and said it was needed to distinguish subsidies from blockage of markets.
"On average the United States' tariff on agriculture is 12 percent, which is among the lowest when compared to the European Union (EU) 23 percent, India 35 percent and Japan 43 percent. Thus it is not the US that is blocking its markets and we do want to lower the existing tariffs on agriculture," he pointed out.
"Yes, the US does provide subsidies to its farmers, but comparing to the European Union, our number is low; last year we extended worth 19 billion dollar in terms of subsidies while the European Union spent 70 billion for the same purpose. We are prepared to reduce the subsidies on agriculture, provided the EU also does the same.
Obliviously, for the countries like Pakistan, which has huge potential in agriculture, opening of markets and cuts in subsides are very important," he added. Ambassador Peter F Allgeier, Deputy United States Trade Representative agreed that the EU was afraid to lower its subsidies on agriculture; since it was not competitive and feared that, the European farmers might go out of the business.