Sugar, Dairy Programs Called ‘Most Vulnerable’ to Reforms

The U.S. sugar and dairy programs may be “our two most vulnerable” programs for reform if world trade talks are successful, Agriculture Secretary Clayton K. Yeutter said today.

In an interview on National Public Radio, Yeutter said the just-concluded Houston economic summit marked the first time the European Community has agreed to negotiate possible reductions in export subsidies.

“Sugar and dairy products are probably our two most vulnerable” programs, Yeutter said, because the U.S. farm program contains many protections for them. In both commodities, the government guarantees a minimum price and restricts imports.

Yeutter reiterated the U.S. position that nations are free to maintain a social safety net for farmers as long as the system does not distort trade. U.S. officials have said activities such as disaster aid, conservation, nutrition, research and information distribution should be exempt from reform.