Agriculture in WTO Negotiations (CRS Report for Congress)
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| Release Date |
Sept. 30, 2003 |
| Report Number |
RL32053 |
| Report Type |
Report |
| Authors |
Charles E. Hanrahan, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
The World Trade Organization's (WTO) fifth ministerial conference (held September 10-14,
2003
in Cancun, Mexico) ended without an agreement on a framework for continuing multilateral
negotiations on agricultural trade liberalization. The inconclusive end of the Cancun ministerial
places in doubt the ability of WTO member countries to complete the current round of negotiations
by the scheduled January 1, 2005 deadline.
WTO member countries launched this new round of multilateral trade negotiations in
November 2001 at the WTO's fourth ministerial conference in Doha, Qatar. Because of its emphasis
on integrating developing countries into the global trading system, the round is called the Doha
Development Agenda (DDA). The new round incorporates agriculture into a comprehensive
framework that includes negotiations on industrial tariffs, services, dispute settlement, and other
trade issues. The ambitious agenda for agricultural trade liberalization calls for substantially
improving market access, reducing and phasing out export subsidies, and substantially reducing
trade-distorting domestic support.
While the United States and the EU reached agreement on a broad framework for negotiating
agricultural trade liberalization before the Cancun meeting, a group of developing countries, the
G-22 which includes Brazil, China, India, and South Africa, among others, made a counter-proposal
which makes fewer demands on developing countries than the EU-U.S. framework. The Chairman
of the Cancun ministerial circulated a draft declaration at the meeting that attempted to reconcile
differences between developed and developing countries on the agricultural issues. Neither the
proposals made by the United States and the EU and the G-22 nor the Chairman's draft declaration
propose specific modalities (formulas, targets, or timetables) for reducing tariffs and trade-distorting
support and for phasing out export subsidies.
WTO meetings are scheduled to continue, beginning with an agriculture negotiating group
meeting in October and ending with a senior level stock taking in December 2003. Amid
considerable uncertainty about prospects for completing the round, WTO members, including the
United States, the EU, the G-21 and other countries, are taking stock and considering options for
concluding the round. U.S. trade officials also have indicated they will be focusing attention on
bilateral and regional trade negotiations.
Much of U.S. agriculture would benefit from further multilateral trade liberalization, but some
U.S. products might face stiffer foreign competition at home or in third-country markets. DDA
negotiations, if they result in new commitments to reduce trade-distorting domestic support or export
subsidies, also could affect U.S. farm programs authorized in the 2002 farm bill ( P.L. 107-171 ). Any
agreements reached in the new round would be taken up by Congress under fast-track procedures
for legislation to implement trade agreements as spelled out in the Trade Act of 2002 ( P.L. 107-210 ).
This report will be updated periodically.
