U.S.
Proposal for Global Agricultural Trade Reform Summary
of U.S. Proposal for
Trade Reform
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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
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Last modified:
Friday, November 18, 2005
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