Liberalizing agricultural trade and developing countries

Agriculture has been a special case in which trade liberalisation has not progressed since a considerable period, while subsidisation and protection of agriculture remain the norm in developed countries. This paper reflects the outcome of a conference dedicated for liberalising agricultural trade and developmental concerns of low-income economies.

The paper notes that there is broad agreement that the current global regime of support and protection in developed countries, with less support and often less protection in developing countries, is not desirable. Reasons for this undesirability include global economic development, the environment, and the integrity of the global trade system.

The authors indicate all participants agreed that:

• reduction of agricultural protection and subsidisation in developed countries is necessary to strengthen both international growth opportunities and the global trade regime
• WTO Doha Round negotiations on agriculture should compel policy change in industrialised countries to limit trade-distorting domestic subsidies for agricultural products, and increase market access
• in response to temporary hardships caused by an overall reduction in agriculture support, governments should have the flexibility to adopt temporary or limited domestic and international, compensatory policies