U.K. Agriculture Minister MichaelJopling said an OECD study which calculates the level of
domestic farm subsidies in industrial countries would be a good
basis for global agriculture negotiations now underway.
    The controversial study, which has not yet been released by
the Paris-based OECD, has calculated a measure of farm
subsidies called the the Producer Subsidy Equivalent, PSE, OECD
sources in Paris said last month.
    Jopling, in a speech to the Commodity Club yesterday,
suggested the PSE be refined as a starting point for reducing
domestic farm policies during the Uruguay round of trade
negotiations begun under the world trade agreement GATT.
    The OECD study shows that there are few countries which do
not significantly subsidize farmers, Jopling said.
    The OECD study attempts to measure all farm subsidies for
the years 1979 through 1981.
    Jopling qualified his endorsement of the PSE as a
negotiating tool, however, by saying the European Community
would want "credit" in the negotiations for recent actions
taken to reform the Common Agricultural Policy.
    Representatives of other industrial countries told Reuters
they are more skeptical than the U.K. about the PSE concept.
    An Australian trade official said Canberra has "grave
technical reservations" about the use of the PSE calculations.
U.S. officials said there are several shortcomings to the study
including the necessity to update the calculations to reflect
recent changes in farm programs worldwide.
    The officials said the study may be released in May.
 Reuter
