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Briefing Rooms

World Trade Organization (WTO)

Contents
 

Overview

The Uruguay Round Agreement on Agriculture (AoA) marked a turning point in the history of the multilateral trading system by subjecting agricultural trade to essentially the same rules that discipline trade in industrial goods. For the first time, WTO members committed to reducing agricultural tariffs, export subsidies, and trade-distorting domestic support. The latest round of WTO trade negotiations, launched in the Qatari capital of Doha in November 2001, are the most ambitious attempt ever to spur global economic growth by liberalizing trade in agricultural and non-agricultural goods as well as freeing up trade in services.

In launching the Doha negotiations, WTO members recognized the contribution of the multilateral trading system to economic growth and development and pledged to continue the process of reform and liberalization of economic policies. The Doha Ministerial Declaration placed the interests of developing countries, who constitute the majority of WTO members, at the heart of negotiations, adding a new dimension to the talks that increased both the potential gains and the complexity of reaching agreement. More overview...

Features

World Trade Organization and Globalization Help Facilitate Growth in Agricultural Trade (June 2008). Despite strong criticism of the WTO, membership in the organization continues to grow. WTO member countries trade concessions to gain access to foreign markets, benefiting producers and consumers in the aggregate. The growth of the WTO has helped facilitate the globalization of agriculture.

Global Agriculture and the Doha Round: Market Access Is the Key (September 2006). Increasing market access by lowering tariffs has been shown to produce the greatest share of benefits from agricultural trade liberalization. Nonetheless, reducing high agricultural tariffs remains a sticking point in the Doha Round of trade talks.

Recommended Readings

Agricultural Trade Preferences and the Developing Countries (May 2005). Nonreciprocal trade preference programs originated in the 1970s as an effort by high-income developed countries to provide tariff concessions for low-income countries. This study focuses on the United States and European Union and finds that the programs offer significant benefits for some countries, mostly the higher income developing countries.

Relaxing Fruit and Vegetable Planting Restrictions (February 2007). Participants in U.S. farm programs are restricted from planting and harvesting fruits and most vegetables on base acreage. However, a recent WTO challenge to U.S. programs has created pressure to eliminate planting restrictions. Although eliminating restrictions would not lead to substantial market impacts for most fruit or vegetables, the effects on individual producers could be significant. For the full report, see Eliminating Fruit and Vegetable Planting Restrictions: How Would Markets be Affected? (November 2006).

The Road Ahead: Agricultural Policy Reform in the WTO—Summary Report (January 2001). Agricultural trade barriers and producer subsidies inflict real costs on the countries that use these policies and on their trade partners. If trade negotiations resulted in full elimination of agricultural price-distorting policies—market access limitations, domestic support to producers, and export subsidies—the results would include an annual increase in world welfare, or consumer purchasing power, of $56 billion over the next 15 years.

See all recommended readings...

Recommended Data Products

WTO Agricultural Trade Policy Commitments Database contains data on implementation of trade policy commitments by WTO member countries. Data on domestic support, export subsidies, and tariffs are organized for comparison across countries. This queriable database offers various options for viewing and downloading data.

Agricultural Market Access Database (AMAD) provides data and information on WTO member countries regarding tariff schedules, tariff bindings, applied tariff rates, import quantities, notifications to the WTO on countries' commitments, and other data useful in analyzing market access issues in agriculture.

Foreign Agricultural Trade of the United States (FATUS) provides U.S. agricultural exports and imports, volume and value, by country, by commodity, and by calendar year, fiscal year, and month, for varying periods, such as 1935 to the present or 1989 to the present. Updated monthly or annually.

Glossaries

Definitions of Terms Used in This Briefing Room
World Trade Organization Glossary

Related Briefing Rooms

U.S. Agricultural Trade
Global Resources and Productivity
North American Free Trade Agreement (NAFTA)

Related Links

Foreign Agricultural Service (FAS). Official site provides data on current U.S. trade; data on supply and demand (including imports and exports) for major trading partners; current world market and trade reports (and attache reports); and information on the agricultural trade and agricultural policies of foreign countries.

United States Trade Representative (USTR). USTR is responsible for developing and implementing trade policies which promote world growth, support efforts to protect the environment and advance core labor standards.

World Trade Organization. The WTO is the only global international organization dealing with the rules of trade between nations. Official site includes information about the organization and its membership, and access to official WTO documents.

See all related links...

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For more information, contact: John Wainio

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Updated date: August 7, 2008