Iran thaw aids farms

THE UNITED States administration is helping its embattled farmers to help themselves by lifting most restrictions on food sales to Iran, Libya and Sudan with immediate effect.

The move, which also sends a diplomatic signal to the countries concerned, augments a policy decision taken in April to make trade sanctions more flexible. All three are subject to US sanctions because of suspected involvement in terrorism. US companies are already allowed to export food and medicines to Cuba under a rule change announced earlier this year.

Farmers have been lobbying for government subsidies to help combat falling prices at home and a decline in sales abroad. Exports were hard hit by the economic crisis in Asia, and have shrunk further as a result of the European embargo on hormone-treated beef and consumer resistance to genetically modified food.

Although the US has imposed tariffs on a range of European products, mainly meat, in a World Trade Organisation-approved response to the beef embargo, the scale of the permitted retaliation disappointed farmers when it was announced last week.

A White House statement said that the new regulations should "provide US farmers and businesses with a significant measure of predictability and enhance their ability to establish markets in every corner of the globe". Officials said that the change could generate as much as $500m (pounds 316m) in increased farm exports.

Representatives of farmers, who are experiencing some of the lowest prices for 20 years, welcomed the statement. The biggest potential market is in drought-stricken Iran, which is expected to double imports of US wheat.