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."