The Uruguay Round Agreement on Agriculture (AoA) marked a
turning point in the history of the multilateral trading system by
subjecting agricultural trade to essentially the same rules that
discipline trade in industrial goods. For the first time, WTO
members committed to reducing agricultural tariffs, export
subsidies, and trade-distorting domestic support. The latest round
of WTO trade negotiations, launched in the Qatari capital of Doha
in November 2001, are the most ambitious attempt ever to spur
global economic growth by liberalizing trade in agricultural and
non-agricultural goods as well as freeing up trade in services.
In launching the Doha negotiations, WTO members recognized the
contribution of the multilateral trading system to economic growth
and development and pledged to continue the process of reform and
liberalization of economic policies. The Doha Ministerial Declaration placed the
interests of developing countries, who constitute the majority of
WTO members, at the heart of negotiations, adding a new dimension
to the talks that increased both the potential gains and the
complexity of reaching agreement. Members agreed that "special and
differential treatment for
developing countries shall be an integral part of all elements
of the negotiations." Having introduced a strong development
dimension to the negotiations, member governments departed from
using the term Doha Round, opting instead for
Doha Development Agenda (DDA) to reflect the new emphasis.
The negotiations on agriculture were already almost 2 years old
when they were incorporated into the DDA. Article 20 of the
WTO Agreement on Agriculture (see
AoA general issues) committed member governments to undertake
negotiations to continue the reform process begun during the
Uruguay Round (1986-94). The negotiations had to start no later
than 5 years from 1995. Accordingly, the agriculture negotiations
officially started in early 2000 and by the time of the Doha
Ministerial Conference, 126 governments had submitted 45
negotiating proposals covering all major areas of the agriculture
negotiations as well as a few new ones.
The agriculture discussions have since focused on the "three
pillars"-
market access,
export subsidies, and
domestic support-around which the agricultural talks were
structured in the Uruguay Round. The Doha Declaration states, in
part, that the objectives for agriculture are "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."
Partly because of the close tie between agriculture and
development, agricultural talks within the DDA have taken center
stage. They have also proven to be the most contentious issue in
the negotiations. See the WTO's Doha Development Agenda: Negotiations,
Implementation and Development for details.
Apart from the Doha negotiations, the ongoing work of various
WTO committees also affects agricultural trade. These include the
Committees on
Sanitary and Phytosanitary Measures,
Technical Barriers to Trade,
Antidumping, and
Subsidies and Countervailing Measures, as well as the work on
accession of new and prospective WTO members,
particularly Russia and Ukraine.
Another function of the WTO is to provide a forum where
countries can resolve trade disputes. The Dispute Settlement Body (DSB) administers
dispute settlement provisions and processes. The DSB is authorized
to establish dispute settlement panels, adopt panel and appellate
body reports, maintain surveillance of implementation of rules and
recommendations, as well as authorize suspension of concessions and
other obligations under WTO agreements.