LETTERS

THIS MONTH'S PRIZE LETTER

Fair Trade

ACT AGAINST SUBSIDIES

I have to agree with the statements regarding the need for increased trade made in Anver Versi's editorial "Open the gates for African Trade" in the July issue of African Business. Agricultural subsidies are a major stumbling

Although a lot is said about the need to eliminate subsidies, not much is being done in the EU and the US to do so. The recent US Farm Bill is a good example of where subsidies were increased rather than reduced. In addition, the announcement of an agreed reform of the EU's Common Agricultural Policy (CAP) will leave a sour taste in many African farmers' mouths because the level of subsidies are not reduced, only the way in which it is paid to EU farmers.

Next year the EU will pay their farmers Euros40bn ($45.3bn) rising to Euros45bn ($51bn)in 2007. Wheat and maize will be subsidised by Euro 63 ($71) per ton!