The European Union's (EU) second offer on trade distorting ag subsidy reductions is too little and U.S. Special Trade Representative Rob Portman urged the EU to promise deeper cuts at meetings next week in Europe.
Portman, testifying at a House Agriculture Committee hearing on the status of the WTO trade talks, said if the EU does not offer greater reductions in its subsidies, then it's likely the December ministerial meeting will collapse. The U.S. has offered to cut its subsidies by up to 65% in exchange for offers on tariff reduction and market access. The EU countered the U.S. offer by saying it would reduce subsidies by an aggregate 46% -- Portman said the real figure is 39%.
Secretary of Agriculture Mike Johanns, testifying at the same House hearing, said that any WTO deal on agriculture hinges on "a better proposal by the EU," explaining any EU offer must include "real market access."