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The political well being of politicians during election time is at stake if this very
small segment of the population is protected. The set up of these subsidies assure
this population of their employment and is all beneficial to the developed country
because that is less they have to import. The agriculture in these developed nations
allows those in the market to hedge against those they are in competition with.
These talks of free trade in agriculture have had little to no progress because they
cannot come up with an agreement that will satisfy developed countries. Currently
these subsidies are protecting these developed nations such as the EU and the US
farmers and are highly protecting their assets, which in this case is their
agriculture. The millions of dollars given out by the government by these subsidies
is a huge contributor in the economy and generate a lot of profit for developed
nations. This trade barrier would force developed nation to compete head to head
with developed nations ultimately eliminating the use of selling on the world
market.
RECOMMENDATION.
Developed nations must significantly shrink or eliminate giving substantial
subsidies to corporate famers in their respective nations.
Foreign aid to developing nations should not be restricted by donor interests and
agendas.
Grant equal market access and create engines for growth in developing countries.
Increase world prices and shift production from high-cost, protected producers in
the developing world.
Make technology available to developing nations to improve production.
Invest in post-agricultural instruments to enable storage over a stretched period.