The European Union (EU) member states reached an agreement to delink, or separate, farm subsidies from production and gradually reduce those subsidies by 5%. The agreement represents a significant change in the direction of EU farm programs. But the U.S. government insists the EU still has a long way to go to bring about reform among all ag trade partners who participate in the World Trade Organization.

In a joint statement, Secretary of Agriculture Ann Veneman and U.S. Trade Representative Robert Zoellick, say, “The next critical step is for the EU to promptly translate the decision into meaningful WTO proposals:

• harmonizing and substantially reducing trade-distorting domestic supports,

• eliminating export subsidies, and

• substantially improving market access through tariff reductions.”