ABSTRACT

Ever since it was effectively brought back within the scope of international trade negotiations in the Uruguay Round, agricultural trade has been one of the major obstacles to securing a fair and effective international trade agreement. As Peter Mandelson, the EU trade commissioner, has commented, agriculture has proved to be the ‘most complex, challenging and most politically charged’ part of the Doha Round discussions (Agra Europe, 23 September 2005: EP/6). The fundamental reason is that agricultural trade is highly politicised because of the high levels of domestic support still provided for agriculture in most countries. 1 This, in turn, means that rent-seeking coalitions cluster around agricultural politics with a strong attachment to preserving the status quo or at least disturbing it as little as possible. It seems that the first thought of any farmer when a new product opportunity comes along (for example, biofuels) is: can I get a tax break or a subsidy? However, agricultural privileges are gradually being eroded, and the most important factor in bringing about change is the liberalisation of farm trade.