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Agriculture and WTO Doha Development Agenda

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 6^th 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 Hongkong 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 and more information on this agreement can be seen on  the agriculture pages of the WTO website. In addition further information about the EU's agriculture policy can be accessed via the EU Commission's website.

Contact:

Eoin Parker
Tel: 0207 215 6012
Fax: 0207 215 2235
Email: Eoin.Parker@berr.gov.uk

Philip Richards
Tel: 0207 215 6813
Fax: 0207 215 2235
Email:Philip.Richards@berr.gsi.gov.uk