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FARMING

Norway farmers world’s most subsidised: OECD

Norwegian farmers rake in more in subsidies than those of any other country in the world, with 63 per cent of their income coming from the government, a new study from the OECD has reported.

Norway farmers world's most subsidised: OECD
Heavily subsidised Norwegian cows - NTB Scanpix
The support farmers in Norway received in 2012 jumped from 59 percent of their income in 2011,  as the government sought to offset the impact of a strong currency. 
 
Ken Ash, the Trade and Agriculture Director of the OECD, which groups together 34  of the world's richest countries, called for a reduction in subsidies worldwide. 
 
"The time is ripe for governments to credibly commit to wide-ranging farm support reform," he wrote. "Meeting the needs of a growing and richer world population requires a shift away from the distorting and wasteful policies of the past."
 
The report, which was published on Wednesday, said that countries such as Norway, which already heavily subsidise farmers, had generally increased subsidies over the last year, while countries with lower subsidies had not. 
 
Agriculture Minister Trygve Slagsvold Vedum defended Norway's system.  "If we want food production in our country, this is the way it has to be," he said. 
 
Switzerland had the second largest subsidies, representing 56 percent of farmers' income, in 2012, while Japan had the third largest, making up 55 percent. 
 

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POLITICS

France vows to block EU-South America trade deal in current form

France has vowed to prevent a trade deal between the European Union and the South American Mercosur bloc from being signed with its current terms, as the country is rocked by farmer protests.

France vows to block EU-South America trade deal in current form

The trade deal, which would include agricultural powers Argentina and Brazil, is among a litany of complaints by farmers in France and elsewhere in Europe who have been blocking roads to demand better conditions for their sector.

They fear it would further depress their produce prices amid increased competition from exporting nations that are not bound by strict and costly EU environmental laws.

READ ALSO Should I cancel my trip to France because of farmers’ protests?

“This Mercosur deal, as it stands, is not good for our farmers. It cannot be signed as is, it won’t be signed as is,” Economy Minister Bruno Le Maire told broadcasters CNews and Europe 1.

The European Commission acknowledged on Tuesday that the conditions to conclude the deal with Mercosur, which also includes Paraguay and Uruguay, “are not quite there yet”.

The talks, however, are continuing, the commission said.

READ ALSO 5 minutes to understand French farmer protests

President Emmanuel Macron said Tuesday that France opposes the deal because it “doesn’t make Mercosur farmers and companies abide by the same rules as ours”.

The EU and the South American nations have been negotiating since 2000.

The contours of a deal were agreed in 2019, but a final version still needs to be ratified.

The accord aims to cut import tariffs on – mostly European – industrial and pharmaceutical goods, and on agricultural products.

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