There’s no question that foreign agricultural subsidies have grown and it impacts trade. While the U.S. and E.U. have lowered support over time, less developed countries haven’t.
China, for example, has increased its domestic support above WTO allowed levels by 136% in corn and 158% in rice since 2000, and has gone from no above limit levels in cotton to $6.4 billion per year and rising. Brazil increased cotton support by 593% over the same period.
These subsidies are aimed at reducing imports (increasing exports). In many cases, these distortions significantly impact U.S. farmers and ranchers.
– Darren Hudson, Larry Combest Endowed Chair for Agricultural Competitiveness, Texas Tech University