The U.S. proposal (July 2002) for the WTO agriculture negotiations fulfills the mandate for the Doha Development Agenda, in which WTO Members agreed to "comprehensive negotiations aimed at: substantial improvements in market access; reductions of, with a view to phasing out, all forms of export subsidies; and substantial reductions in trade-distorting domestic support." This proposal, which builds on the framework of the U.S. proposal from June 2000, specifies ambitious reform goals and reduction commitments.

The proposal outlines a two-phase process for trade reform. The first phase eliminates export subsidies and reduces worldwide tariffs and trade-distorting domestic support over a 5-year period. This would be accomplished by harmonizing tariffs and trade-distorting domestic support at substantially lower levels than what is currently allowed. The second phase is the eventual elimination of all tariffs and trade-distorting support by a date to be established in these negotiations.

The U.S. Proposal:

• demonstrates leadership by providing a clear, specific, and feasible approach to fulfilling the mandate of the Doha Development Agenda.
• is comprehensive, addressing trade-distorting policies in market access, export competition, and domestic support covering all products and all trading partners.
• expands opportunities for growth in global agricultural trade.
• is equitable, resulting in all trade-distorting measures being reduced to similar levels, narrowing the wide inequities that exist between countries.
• results in effective reform by reducing high levels of trade-distorting support and protection.
• simplifies world trade rules for agriculture by eliminating complicated customs and tariff procedures and streamlining domestic support commitments.
• is ambitious, calling for the eventual elimination of trade-distorting measures that affect world agricultural trade.

Key Elements of the U.S. Proposal:

Market Access

• reduces tariffs, both out-of-quota and tariff only, using a formula approach which cuts high tariffs more than low tariffs, with no tariff greater than 25 percent;
• eliminates all in-quota tariffs;
• expands tariff-rate quota quantities by 20 percent;
• strengthens disciplines on tariff-rate quota administration;
• eliminates monopoly import control of state trading enterprises;
• eliminates the Special Agricultural Safeguard;
• promotes sectoral initiatives.
  

Domestic Support

• simplifies domestic support disciplines, ending "blue box" exception;
• reduces ceilings of allowed levels of trade-distorting domestic support to 5 percent of a country’s total value of agriculture production;
• maintains the de minimis provisions;
• maintains the green box provisions;
• promotes sectoral initiatives.

Export Competition

• eliminates direct export subsidies;
• eliminates the monopoly control and special financial privileges extended to state trading enterprises;
• strengthens disciplines on all countries’ export credit programs;
• strengthens disciplines on export taxes.

Main Page: U.S. Proposal for Global Agricultural Trade Reform

Background on the current round of WTO negotiations

Last modified: Friday, November 18, 2005