WTO and agricultural policies

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The World Trade Organization (WTO) is aimed at promoting international trade.
Under the auspices of the WTO Secretariat in Geneva, the 153 members negotiate and make (long-term) agreements regarding rules for international trade. In addition, many countries enter into bilateral trade agreements.
LEI is analysing the economic consequences of trade agreements from a Dutch, European and global perspective.



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Doha Round

The current WTO trade negotiation round, which was launched in November 2001 during a WTO Ministerial Conference in Doha, Qatar, has resulted in the formulation of the Doha Development Agenda. This negotiation round was intended to be completed in late 2004, but because the negotiations have not progressed smoothly, the decision process was still not finished as of mid-2011. The problems have been caused in part by differences of opinion between the most important developing countries and the developed countries, as well as differences of opinion between the EU and the US. The major stumbling block is the agriculture dossier.

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Agriculture and the WTO

The WTO negotiations have far-reaching consequences for agriculture, because the agreements do not only affect international trade but domestic agricultural policies as well. Of primary importance is domestic policy which may have an influence on international trade. Most of the criticism focuses on production subsidies, because they disturb the market.

Effects of new agreements
In both developed and developing countries, the entire agro-sector will directly or indirectly feel the effects of new agreements within the WTO. Exporters would benefit from freer trade policies because they would then be better able to access foreign markets, while producers in this situation would be unable to benefit from domestic subsidies and import restrictions. These are the kinds of factors which complicate the negotiations.

Recent LEI studies

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Bilateral trade agreements

While the multilateral negotiations within the WTO regarding improving market access are stagnating, a number of countries are reaching bilateral trade agreements. For instance, the EU is working on free trade agreements with India, Singapore, Malaysia, Ukraine, and Mercosur. The EU is also entering into EPAs (Economic Partnership Agreements) with the ACP states. In addition, the EU has already entered into preferential trade agreements with a large number of developing countries which include agreements on the mutual trade of agricultural products.

Recent LEI studies

 


Other relevant publications


You can find more relevant publications under the tab Publications & products

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