Implications of the shift in United States farm policy

This article sets out to describe the main features of the new
farm legislation in the United States, assess the extent to
which it conforms to World Trade Organization (WTO); rules,
and provide a preliminary assessment of its impact on Latin
America. The article first looks at the new United States
Farm Security and Rural Investment Act of 2002, identifying
the different mechanisms used to support the country's farm
producers. It then analyses that Act, referred to hereinafter
as the 2002 Farm Act, in the light of the rules established
and the commitments made in the Uruguay Round of the
General Agreement on Tariffs and Trade (GATT);. This is
followed by an analysis of the possible impact of the new
law on Latin American agriculture. Lastly, reference is made
to recent developments in multilateral trade negotiations and
the way they relate to the 2002 Farm Act.