Background

 
The current round of World Trade Organization (WTO) trade negotiations was launched in Doha, Qatar, in Nov. 2001. The goals for agriculture in this negotiation are substantial improvements in market access; reduction and ultimate elimination of all forms of export subsidies; and reduction of trade-distorting domestic supports.   
 
The negotiations are focused on resolving the following issues in each area:
 
Market Access
This has been the most difficult area to achieve progress since every nation has tariffs and products that it wishes to protect. There is agreement that the highest tariffs will be reduced the most, but discussion continues on the level and scope of tariff reductions.  For developed countries, the number and treatment of sensitive products shielded from tariff reductions remains to be settled.  For developing countries, decisions need to be made regarding special products to be protected and a special safeguard mechanism to deal with import surges.   
 
Domestic Supports
Agreement has been reached that trade-distorting domestic supports will be reduced with the European Union (EU) at the top level for reductions, the U.S. and Japan in the middle level, and all other countries at the lowest level for reductions. Issues to be negotiated include the amount of reductions, the criteria for recognition of the U.S. counter-cyclical program as less trade- distorting, and the need for any further criteria to ensure that national conservation and direct payment programs have little or no impact on trade.  
 
Export Competition
Negotiations have made more progress in this area. Direct export subsidies, primarily used by the EU, are to be eliminated by the end of 2013. Export credit programs will have repayment periods no longer than 180 days. The U.S. will support disciplines in food aid programs to lessen the commercial displacement of locally produced products by food aid programs.
 
Cotton
The Ministerial Declaration from Hong Kong in Dec. 2005 says that trade-distorting domestic supports for cotton should be reduced more ambitiously and over a shorter time period than the general domestic support reduction formula.          

AFBF Policy

 
Agriculture’s best opportunity to address critical trade issues is in the multilateral arena. The balance between reductions in trade-distorting domestic supports and gains in market access through tariff reduction is key to deciding if a final agreement on agriculture would benefit U.S. farmers and ranchers. Farm Bureau is opposed to singling out cotton for treatment different from that for all other commodities.

Action

 
Farm Bureau will continue to urge U.S. negotiators and foreign governments that any agreement must reduce barriers and improve opportunities for U.S. agriculture in world markets. Encourage your senators and representatives to support efforts to improve agricultural-expanding trade through the WTO.

April 2010