Africans’ Burden: West’s Farm Subsidies

Ugandan cotton farmers are a prime example of developing world farmers who are losing the competition with their subsidized counterparts in Europe and the United States; simply making ends meet is difficult. At the new meeting of the Doha trade talks in Cancun this week, African countries are demanding either an end to the American and European policy of subsidizing farmers – a policy which poorer states claim violates free trade principles – or some sort of compensation to give their own farmers a better chance. African cotton farmers' production costs currently average about 50 cents per pound, compared to 73 cents or more for US and European farmers. But since they are forced to foot the entire bill themselves, African farmers can not get by with the same low profit margin as their subsidized brethren in the West. The US government currently gives $2 billion to its cotton farmers alone, and more to exporters, which has helped keep world prices at 35 cents a pound. Until that price changes, Ugandan farmers have small chances of improving their lot. – YaleGlobal