On top of this, progress on decoupling subsidies from production has been limited.

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Ann Veneman, Mr Bush's agriculture secretary, suggested a more sensible approach to farm support, unlinking subsidies from production and focusing more on the environment.

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Ms Spelman has said that the policy distorts trade and called for the subsidies to have less emphasis on food production, and reward farmers who take steps to protect the environment.

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Cheekily, perhaps, in view of its own farm bill, Washington has proposed the eventual abolition of all agricultural export subsidies and a limit on domestic farm subsidies of 5% of the value of total domestic production.

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In order to eliminate the influence of various taxes and subsidies in different branches of the economy on the structure of production and generation of income, indicators by branches are valued at basic prices.

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The draft legislation comes after months of debate and failed proposals, including retroactive cuts to investment agreements, a full halt in new subsidies for renewable energy projects and a variable tax rate on energy production that sank under pressure from wind and solar sectors already struggling to survive.

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Brazil, also a competing cotton producer, believes that this combination of US agricultural subsidies and over-production has resulted in the dumping of American cotton on the world markets, depressing world prices.

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Jud Gilbert, a Michigan state senator who opposes film subsidies, points out that if he could offer a 42% rebate on car production, that industry would not be in crisis.

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Ironically, Europe's much-criticised Common Agricultural Policy has been moving away from price and production-based subsidies towards direct payments to farmers that have far less impact on trade.

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