Impacts of American-European Agricultural Subsidies on World Agricultural Trade

The agricultural subsidy policies of the United States and EU have produced enormous influences on many aspects of the world agricultural trade and on the agricultural production of the developing countries with intensive agriculture.Based on a study of the policies,this paper concludes that they are provoking more trade conflicts of agricultural products between countries,having a devastating impact on the agriculture of developing countries,and altering the distribution pattern of social welfare resources among those countries involved in the international trade.Therefore,it is advisable that the US and European countries cut down on their agricultural subsidies,and abolish the policies eventually.