Agriculture
Agricultural
produce is protected by high tariff barriers, production
support and the use of export subsidies in many countries.
Over the years there have been attempts to reduce barriers
to trade in the agricultural sector, but it was not within
the scope of World Trade Organisation (WTO) rules until
the 1986 – 1994 Uruguay Round of trade negotiations, when
a comprehensive 'Agreement on Agriculture' was concluded.
There are three pillars to the Agriculture Agreement.
Firstly the improvement of market access
by reducing tariffs and providing new access opportunities;
secondly, a reduction in the volume and value of subsidised
exports, and thirdly the reduction of domestic
support measures subsidising production. While
the Uruguay Round took an important first step in eliminating
these barriers to free trade, there is still more work
to be done.
At
the 4th WTO Ministerial in Doha, November 2001, the Ministerial
Declaration further committed the WTO members to firm
negotiations on substantial improvements in market access;
reductions of, with a view to phasing out, all forms of
export subsidies; and substantial reductions in trade
distorting domestic support. At the same time, the Doha
Declaration committed members to take account of non-trade
concerns (e.g. environment, rural/social development,
animal welfare) and to negotiate special and differential
treatment for developing countries.
The
6th Ministerial Conference in Hong Kong, December
2005, saw some modest progress in agricultural negotiations.
Ministers from the WTO’s
149 member governments approved a declaration after six
days of intensive negotiations. Although the agreement
fell short of the UK’s ambitions, some important steps
forward were taken.
The
WTO membership agreed to end export subsidies in agriculture
by 2013, with a substantial part realised by the mid-point
of the implementation period (around 2010). The Ministerial declaration makes
clear the agreed date is conditional. Loopholes have to
be plugged to avoid hidden export subsidies in export
credit, food aid and the sales of exporting sales enterprises.
For
cotton, the elimination of export refunds is accelerated
to the end of 2006. In addition, cotton exports from least-developed
countries will be allowed into developed countries without
duty or quotas from the start of the period for implementing
the new agriculture agreement.
Special
and Differential Treatment provisions emphasise increased
flexibility and lower reduction commitments for developing
countries. LDCs are to be exempt from any commitments
whilst developed countries, and those developing countries
able to do so, should provide duty and quota-free access
to LDC imports. Developing countries can designate special
products for agricultural products (based on food security,
livelihood security and rural development needs) which
would be exempt from commitments, while a Special Safeguard
Mechanism will guard against extremes of currency and
market fluctuations.
There
has been good progress in technical discussions since
the framework agreement.
For
more information on this agreement, see the agriculture
pages of the WTO website. For more information about
the EU's agriculture policy see the EU website.
Liz
Lalley
Tel: 020 7215 6029
Fax: 020 7215 2235
Email: liz.lalley@dti.gsi.gov.uk
