THE vision of a new world order, where ''markets and not governments''
determined farm production, was painted by yesterday's opening keynote
speaker at Oxford, Mr Mike Espy, the US Agriculture Secretary -- who was
later meeting his UK counterpart, Gillian Shephard, to discuss the
implications of the recent Gatt settlement for agricultural trade.
Pointing out that it was the first time that agriculture had been part
of a Gatt agreement, he said the outcome signalled that America was
going to remain actively involved in world trade, rather than building
new protectionist barriers.
But he added that they would not hesitate to compete ''toe to toe''
with any country that didn't stick by the rules and continued with
export subsidies.
''The world market is where the demand is, it's where the action is,
and it's where the money is,'' Mr Espy declared. ''It is a gigantic pie,
and agriculture is certainly going to get its slice.
''We believe the future lies in the international market place,
because population growth and consumer demand in the US is not rising
fast enough to use the increase in farm productivity.
''Thirty per cent of our harvest is sold to consumers in other parts
of the world, and every year American agricultural exports create half a
million off-farm jobs. We think Gatt is good, and that this is a good
agreement for us -- and for you too.
''It will 'jump start' the world economy, help the European Union out
of recession, and offer other nations the opportunity of growth. A more
open market place for farm products means bigger markets and higher
incomes for producers, who will have more flexibility in making their
own production decisions.''
If all that left the Oxford farming audience feeling slightly uneasy,
they must have been even more nervous after listening to Professor John
Marsh, formerly of Aberdeen and now director of the Centre for
Agricultural Strategy at Reading University.
He warned that it was time for the ''illusions and myths'' about the
Common Agricultural Policy to give way to reality -- and for the policy
to respond to the increasingly competitive market environment facing
farmers.
''The latest adjustments in the wake of the 1992 CAP reforms still
fall far short of what is needed.
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