A comprehensive report from the Organisation for Economic Cooperation and Development (OECD) will encourage reticent American negotiators into striking a deal on global food liberalisation, saying US producers would gain US$500m from the reforms.


As the long-running World Trade Organisation (WTO) Doha Development Round hopefully draws to a close this year, the OECD has concluded there are “net gains for each…type” of American primary food producer.


“Global reform leads to increased world prices and higher US agricultural exports, due primarily to the removal of global tariffs”, said the report ‘agricultural policy and trade reform’.


Prices for American beef, a key US sector, would probably rise significantly, said the OECD. And while larger farms, ranches, growers and livestock units would suffer losses from cuts to production subsidies, the report is optimistic about their ability to innovate and develop new income sources.


Globally, the abolition of production subsidies, despite the parallel cut in tariffs, should lead to price rises, the OECD predicts. In its economic modelling, cheese, butter and powdered milk stand to rise the most – above 10% – while prices for other livestock and crop commodities are expected to increase 2-3%, with world prices for oilseed meal and oilseeds declining a little.