Doha myths and misunderstandings

GATT and GATS

The two acronyms, 'GATT' and 'GATS' are often confused. The General Agreement on Tariffs and Trade (GATT) is the trade agreement agreed in 1947 after the failure of the U.S. congress to ratify the International Trade Organisation that had been proposed at Bretton Woods, along with the International Monetary Fund (IMF) and the World Bank. GATS, the General Agreement on Trade in Services, is the agreement within the WTO on trade in services. It became part of the WTO in 1995.

Export subsidies and domestic subsidies

It is important to distinguish between domestic subsidies and export subsidies. The former are paid to farmers for producing agricultural products. The latter help farmers export their products. This may seem obvious, but the EU in particular often refers ambiguously to reductions it has made in subsidies, without specifying that this is not a reference to the market distorting domestic subsidies but to the less significant export subsidies. Therefore the claims it makes are often not as dramatic as they appear to be.

Winners and losers

It is important to note that removing all subsidies is not the only answer for improving developing country agricultural opportunities. Many developing countries have preferential access through trade agreements. This often means these countries have built up substantial industry or agriculture in areas where others countries will have more competitive sectors if all barriers are removed. In any change in trading relationships there are winners and losers, so adjustment policies must be considered.

Percentages

It is important to put percentages and figures into context, as reports can be misleading. For example, although the Doha Ministerial Declaration obliges Developed Countries to provide duty and quota-free access for 97% of Least Developed Country exports as of 2008, the remaining 3% reservation will account for 330 tariff lines. This could mean depriving some countries of market access for all their key products.