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Agriculture Negotiations and the World Trade Organization

The World Trade Organization (WTO) has made significant progress in the agriculture negotiations between its member governments. However, there are many hurdles left to overcome in the negotiations in order to have a truly harmonious commitment that all countries are likely to follow. There are of course many issues in which the WTO must tackle some of which are presented in this paper such as export subsidies and competition, market access issues and developing countries’ issues. In this paper we will present the above-mentioned issues from the perspective of both developed and developing countries and give some insight into how the negotiations are likely to turn out in the near future. The deadline set out by the Doha Mandate sets January 1, 2005 as the target date. After reading this paper one will be able to see just how far the negotiations have come and be able to decide for ones self if indeed the WTO will meet the Doha Mandate’s deadline.

The World Trade Organization had long been ineffective in combating very important aspects of agricultural trade. Issues such as export and domestic subsidies were dominating many areas of world agricultural trade and the stricter disciplines on import restrict


Moving along, special agricultural safeguards are a second issue facing the negotiations involving market access. They normally fall under the Safeguards Agreement, but there are special provisions in the Agriculture Agreement (specifically Article 5) on safeguards. A few differences exist between normal and agriculture safeguards such as: higher safeguards duties can be automatically triggered when the import volumes rise above a certain level, or with the prices falling below a certain level. It is also not necessary to demonstrate that serious injury is being caused to the domestic industry (www.wto.org).

Therefore, tariff-rate quotas were created to help maintain current import access levels and to provide minimum access opportunities. “This means lower tariffs within the quotas, and higher rates for quantities outside the quotas,” as stated in the Agriculture Negotiations section of the WTO’s website (www.wto.org). While tariff quota administration is a technical subject, it still has a real impact on trade. The quotas determine if an exported product from one country is able to gain access into the market of another country at the within-quota tariff. Currently there are forty-three WTO member nations that are subject to tariff quotas. Among these are the United States, China, Canada, and Mexico. Because of the amount of nations subject to these quotas it is often hard to administer them. Several countries might prefer one method over another and other countries might disagree. Some possible administration methods include: first-come, first-served; bilateral agreements; auctioning; and administration through state trading enterprise. In order to make the allocation of quotas more uniform, some WTO members want the negotiations to determine which methods are approved and which are not. The WTO’s website suggested that problems like underfill (the part of a quota that goes unused, arise due to the failure of some administration methods. Two of the proposed solutions to the underfill problem are the options of carrying the unused portions over to subsequent periods and preventing imports at out-of-quota tariff rates until the quotas are filled. While auctioning off the unused portion of the quota might seem like a plausible method for reallocating what is left of the quota, many countries oppose it. The opposing members see the auctions as a way for governments to get more money possibly violating their tariff bindings. A set of principles in distributing quotas such as transparency and simplicity has been suggested. Supporters of the quota auctions say that the auctions meet these two requirements. Auctions and the other reallocation methods are currently under debate.

Some topics in this essay:
Doha Mandate, Uruguay Round, Canada Mexico, India Nigeria’s, Overall WTO, Cairns Group's, Agriculture Agreement, WTO Seattle”, Organization WTO, Egypt Namibia, developing countries, export subsidies, agricultural trade, uruguay round, agriculture negotiations, tariff quotas, developed countries, developed developing countries, market access, developed developing, special agricultural, market access issues, countries developing countries, export subsidies competition, competition market access,

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Approximate Word count = 2800
Approximate Pages = 11 (250 words per page double spaced)


  

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