The Doha Round and agriculture
Northern agricultural protectionism
Many countries have large and economically significant agricultural sectors, and these are often fiercely protected internationally. However, in the EU, agriculture contributes only 1.7% to the total value of European income. In the US, this figure is even lower, at around 1%. Despite the marginal economic value of agriculture, the sector is heavily subsidised and protected in both of these industrialised trade giants. The United States has vowed that it wants to remove all trade barriers, but is subject to political pressure from such groups as cotton farmers, who are influential in states that are key to the republican vote. Developing countries and agriculture
In contrast to the Northern developed countries, the majority of developing countries depend on agriculture as a provider of livelihoods. As a result, the poorest group of developing countries in the Doha Development Round, the G90, is pushing hard to make sure their interests are recognised, and that they are entitled to ‘special and differential treatment’ to strengthen their handicapped trading positions. However, there is also a group of so-called ‘advanced’ developing countries, such as Brazil, that have large and efficient agricultural systems. This group is thus pushing for more liberalisation in order to exploit their competitive advantages.In Agricultural negotiations in the Doha Development Round can generally be divided into four core themes: market access, domestic supports, export competition, and development issues:
- Market access: this includes import tariff reductions, rules for ‘special’ and ‘sensitive’ products, and a safeguard mechanism protecting developing countries from big dips in world prices or surges in imports which could threaten food security
- Domestic supports: The subsidy payments to farmers, which the WTO has classified
into 3 different coloured boxes, representing different levels of trade-distorting financial supports - Export competition: which include export subsidies, and food aid issues (such as the dumping of Northern agricultural surpluses in developing countries)
- Development issues: recognising the reduced agricultural capacity of many developing countries and thus the need for flexibility and ‘special and differential treatment’ (SDT)
images: C. Hughes / Panos Pictures/ images: C. Stowers / Panos Pictures
