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WTO Members Must Conquer Serious Differences to Keep Ag Talks on Schedule

Member nations of the World Trade Organization (WTO) have significant differences on their goals for reforming global agricultural trade rules, according to the official position statements offered by WTO members at a special session last week. For example, the United States and the Cairns Group proposed serious reductions of agriculture tariffs and export subsidies, while Japan's position essentially maintained current protections. The European Union (EU) has not yet presented its statement and may not until next March. Also by March, international trade officials hope to agree to a negotiating framework for completing the current WTO negotiating round, which launched in Doha, Qatar, last year.

"We hope that the Doha negotiators are able to stick to the timetable, because of the enormous importance of eliminating agriculture subsidies and opening of global markets as soon as possible," said IDFA Senior Vice President Greg Frazier. "We urge the nations to stay at the negotiating table as long as it takes to hammer out this plan."

IDFA strongly supports the ambitious WTO proposal offered by the United States that seeks to significantly reduce agriculture trade barriers and increase market access. The U.S. dairy industry has long been united in calling for many of the reforms outlined in the U.S. plan

. "The U.S. dairy industry would be in a strong competitive position to grow markets beyond our national borders if these talks follow the path described in the U.S. proposal," Frazier added. (Click here to read the previous article about the U.S. proposal.)

The U.S. position has also received serious criticism, particularly over the generous domestic farm subsidies that the United States provides to its producers. The World Bank's chief economist recently accused both the United States and the EU of hypocrisy over their agricultural trade policies.

"It is hypocritical to preach the advantages of trade and markets and then erect obstacles in precisely those markets in which developing countries have a comparative advantage," said Nicholas Stern. "That hypocrisy does not go unnoticed in developing countries. The recent farm bill in the United States and the recent agreement in Europe to delay reform of its common agricultural policy are deeply damaging."

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Posted November 25, 2002