ABSTRACT

The Doha Round of trade talks was christened a ‘development’ round. It was supposed to give special consideration to the needs and concerns of developing countries, which had felt that the Uruguay Round, and indeed all rounds that preceded it, reflected the agenda of the industrialised countries. It was widely assumed that the agriculture negotiations in the Doha Round would be where developing countries would make some of the most gains. Since the completion of the Uruguay Round, which was the first to address agricultural trade squarely, it has become apparent that the inequities in the agricultural trade system were not adequately addressed by the agreement. Agriculture is a highly distorted sector in the global economy. Total subsidies to agriculture in the OECD countries – both export subsidies and domestic support – average over $300 billion per year and depress global prices for agricultural commodities. Developing countries also face highly protectionist trade structures that limit their access to rich country markets, as tariff rates on the products they export remain high. Because agriculture plays such an important role in their economies, improvement in agricultural trade rules has been at the top of the agenda for most developing countries.