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Subsidizing domestic agriculture in global trade

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How does the decision for the U.S. to subsidize domestic agriculture/manufacturing affect global trade? (You could use the tariff on Canadian soft wood imports as a concrete example)

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Solution Summary

This solution explains the impacts of U.S domestic agriculture subsidies will have on the global political economy.

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How does the decision for the U.S. to subsidize domestic agriculture/manufacturing affect global trade?
There is a continued high levels of subsidies and protection in US, Farmers in many developed states receive heavy subsidies, which makes it hard for poor country farmers - who may be more efficient - to export their goods to the biggest markets.
Between 1996 and 2002, an average of $16 billion/year was paid by programs ...

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