US offers lower limit for farm subsidies

The United States took the first bold step in a week of crunch-time trade talks Tuesday, slicing $1.4 billion from a previous offer to limit contentious, trade-distorting subsidies to American farmers. U.S. Trade Representative Susan Schwab said Washington is prepared to rewrite elements of its recently passed farm bill to ensure that U.S. subsidies deemed to unfairly enhance the competitiveness of American farmers are limited to $15 billion annually. While Congress may view the move skeptically, the Bush administration's top trade negotiator shifted pressure on Brazil, India and other emerging economies to open up their markets for industrial goods — a key demand of rich countries in the World Trade Organization's seven-year trade round. But those countries refused to budge during a seven-hour negotiating session that was at... [read full story]