Scrapping Subsidies

This is remarkable:

President Bush yesterday challenged EU leaders to scrap massive subsidies paid to their farmers, saying free trade with Africa would eliminate the need for Third World aid.

Mr Bush, on the eve of the G8 summit in Gleneagles, said that Europe paid “tremendous” agricultural subsidies, and that the US was ready to drop its own payouts to American farmers if Europe had the courage to do the same.

Mr Bush’s challenge — in an interview with Sir Trevor McDonald to be screened by ITV tonight — is likely to be rejected not only by France and Germany, but by many in his own country. But it appeared to be a bold rhetorical step by his Administration to get the world’s richest nations away from talk of aid and toward free-market solutions in the quest to alleviate poverty in Africa.

Asked directly if America would drop its subsidy system if the EU abandoned the Common Agricultural Policy (CAP), Mr Bush said: “Absolutely. And I think we have an obligation to work together to do that.

“Because if we do achieve this business of free trade, and if markets in the West are opened up to countries in Africa, they could be so successful, they could eliminate the need for aid. The benefits that have come from opening up markets — our markets to them and their markets to us — far outweigh the benefits of aid.”

Interestingly, the BBC report on the same interview relegates this offer to a couple of paragraphs at the end, the main subject being – oh dear – Bush ruling out US backing for any Kyoto-style deal on climate change at the G8 summit.

The Guardian, of course, has its own take:

George Bush sounds a warning today to those hoping for a significant deal on Africa and climate change at Wednesday’s G8 summit, making clear that when he arrives at Gleneagles he will dedicate his efforts to putting America’s interests first.

The president will adopt a stance starkly at odds with the idealism professed by the performers at Saturday’s Live 8 concerts around the world and their television audience of 2 billion.

Then, near the end of the article:

Mr Bush also said that the rich world had an “obligation” to make trade fairer, but made it clear he would not slash farming subsidies unless the European Union did the same.

What a bastard, eh?