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WTO Doha Round: The Agricultural Negotiations

Charles E. Hanrahan, Randy Schnepf

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Abstract

On July 24, 2006, the WTO’s Director General announced the indefinite suspension of further negotiations in the Doha Development Agenda or Doha Round of multilateral trade negotiations. The principal cause of the suspension was that a core group of WTO member countries — the United States, the European Union (EU), Brazil, India, Australia, and Japan — known as the G-6 had reached an impasse over specific methods to achieve the broad aims of the round for agricultural trade: substantial reductions in trade-distorting domestic subsidies, elimination of export subsidies, and substantially increased market access for agricultural products. This report assesses the current status of agricultural negotiations in the Doha Round; traces the developments leading up to the December 2005 Hong Kong Ministerial; examines the major agricultural negotiating proposals; discusses the potential effects of a successful Doha Round agreement on global trade, income, U.S. farm policy, and U.S. agriculture; and provides background on the WTO, the Doha Round, the key negotiating groups, and a chronology of key events relevant to the agricultural negotiations.

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On July 24, 2006, the WTO’s Director General announced the indefinite suspension of further negotiations in the Doha Development Agenda or Doha Round of multilateral trade negotiations. The principal cause of the suspension was that a core group of WTO member countries — the United States, the European Union (EU), Brazil, India, Australia, and Japan — known as the G-6 had reached an impasse over specific methods to achieve the broad aims of the round for agricultural trade: substantial reductions in trade-distorting domestic subsidies, elimination of export subsidies, and substantially increased market access for agricultural products. This report assesses the current status of agricultural negotiations in the Doha Round; traces the developments leading up to the December 2005 Hong Kong Ministerial; examines the major agricultural negotiating proposals; discusses the potential effects of a successful Doha Round agreement on global trade, income, U.S. farm policy, and U.S. agriculture; and provides background on the WTO, the Doha Round, the key negotiating groups, and a chronology of key events relevant to the agricultural negotiations.

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Available abstract

On July 24, 2006, the WTO’s Director General announced the indefinite suspension of further negotiations in the Doha Development Agenda or Doha Round of multilateral trade negotiations. The principal cause of the suspension was that a core group of WTO member countries — the United States, the European Union (EU), Brazil, India, Australia, and Japan — known as the G-6 had reached an impasse over specific methods to achieve the broad aims of the round for agricultural trade: substantial reductions in trade-distorting domestic subsidies, elimination of export subsidies, and substantially increased market access for agricultural products. This report assesses the current status of agricultural negotiations in the Doha Round; traces the developments leading up to the December 2005 Hong Kong Ministerial; examines the major agricultural negotiating proposals; discusses the potential effects of a successful Doha Round agreement on global trade, income, U.S. farm policy, and U.S. agriculture; and provides background on the WTO, the Doha Round, the key negotiating groups, and a chronology of key events relevant to the agricultural negotiations.

Key concepts: Subsidy, International trade, Negotiation, Multilateral trade negotiations, Agriculture, Market access, European union, International economics

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