How is international business affected by U.S. trade laws?

Question

who do these laws protect? Do you think they are necessary?

Answer 1

Under current WTO rules, developed countries may exempt subsidies equivalent to 5 percent of their total value of agricultural production from WTO spending limits on trade-distorting subsidies for both product-specific and non-product-specific support. The United States has agreed to cut this figure to 2.5 percent, which, given current U.S. agricultural production, would give Washington an estimated $4.8 billion allowance for both product-specific and non product-specific support.

U.S. spending on product-specific de minimis was estimated at only $60 million in 2005, giving it plenty of room for further cuts in this area. Slashing or eliminating the product-specific de minimis allowance would address one of the major criticisms levied at the U.S. domestic support proposal --that the 53 percent reduction in overall trade-distorting support could actually allow the United States to increase spending from its current $19.7 billion in outlays up to a potential $22.4 billion annually.