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Behind the soaring world food prices
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Trade imbalances

Many developing countries have lashed out at the U.S. and the European Union for their high tariffs on farm imports and providing agricultural subsidies to protect their own farmers.

In Europe, for example, import tariffs still average 23 percent, while its common agricultural policy provides farmers with some 8 billion euros every year.

The U.S., meanwhile, grants farmers some 20 billion dollars in subsidies annually.

Trade restrictions and protectionism have shut many farmers from poor countries out of markets in the richer world.

France, which takes over the EU presidency in July, is now pushing for "community preference" -- jargon for blocking food imports.

To get around world trade rules, the French are suggesting that imports satisfy EU environmental, hygiene or animal-welfare rules -- likely to provide ample scope to rig markets.

Economists say it is time for wealthier nations to rethink their old-fashioned programs of agricultural subsidies.

If the EU sticks to its offer in the Doha trade round, its farm-import tariffs would drop by over half, which would do more to ease hunger in poor countries than any foreign aid, they say.

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