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A Review of: Agriculture and the Doha Round

A Review of: Agriculture and the Doha Round. An article from the Center for Global Development Written by Kimberly A. Elliott In January 2007 *All charts and graphs are taken from the article Reviewed by Walker Somerville for Masters in Global Development 130: Summer Session 1 (2012).

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A Review of: Agriculture and the Doha Round

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  1. A Review of: Agriculture and the Doha Round An article from the Center for Global Development Written by Kimberly A. Elliott In January 2007 *All charts and graphs are taken from the article Reviewed by Walker Somerville for Masters in Global Development 130: Summer Session 1 (2012)

  2. November 2001 Doha, Qatar • Multilateral trade negotiation of the World Trade Organization member states • Meetings meant to place “needs and interests” of developing countries first • Developing Countries had been dissatisfied with previous talks and wanted something more substantive from the “Doha Development Agenda”

  3. Main Theme • Agriculture Market access emerged as a critical issue for 3 obvious reasons • 1. Many Developing countries have comparative advantage in agriculture • 2. Much of world’s poor live in rural areas • 3.

  4. Facts of Farm Subsidies • Organization of Economic Cooperatrion and Development (OECD) estimate of support to agricultural producers, most of which is trade-distorting is $250 billion. • Of that, about $100 billion is subsidies to farmers • the rest comes from programs that prop up prices, including tariffs and other restrictions on imports • Trade barriers would most likely be the area where gains could be made for developing countries

  5. Realities of Farmers According to the Author • Lowering subsidies would do little for poor farmers • Most do not grow enough food to feed themselves and are net buyers of food • Do not have infrastructure to even compete at international market level • Lowering subsidies could force prices higher and hurt poor in short term • Should instead provide technical assistance and infrastructure plans

  6. Two Way Street • Developed Countries can not be expected to give up everything • Developing countries will have to give back too • 50 least developed countries get to free ride, since they are not asked to commit to anything

  7. Percentage of Crop Paid for by Government

  8. Review of Farm Support

  9. Little Impact on Overall PSEs

  10. Some Impact on Trade- Distorting

  11. Potential Effects of Agriculture Liberalization: Price Increases

  12. Seen as Keys to Success • The United States should agree to a sharply lower ceiling for permitted domestic subsidies, so that actual spending is constrained. • The European Union (E.U.) should offer to eliminate export subsidies and accept more imports. • Japan, Korea, Switzerland and other non-E.U. European states should agree to cap their tariffs and allow some increased access for even the most sensitive items, including rice, beef and dairy products. • To clinch the overall trade bargain, and to improve their own competitiveness, the more advanced developing countries should open their markets to manufactured goods and services.

  13. Author’s Definition of a Successful Round • Success requires a broad package that addresses barriers in rich countries to developing-country exports of clothing, footwear and other manufactured goods and services, as well as agriculture. • Emerging markets, such as Brazil, India and China, should open their markets to manufactured products and services, such as finance and telecommunications. • In addition, the emerging markets should join the industrialized countries in providing fully open access (called duty-free and quota-free) for all least-developed country exports (not just 97 percent of tariff lines as proposed by the United States)

  14. Disclaimer • This power point is for educational purposes and is being posted as a sample. Kimberly Elliot is the author of the content, and this power point is a review for classroom purposes. • Kimberly A. Elliott (2007) “Agriculture and the Doha Round”, CGD Working Paper. Washington, D.C.: Center for Global Development, http://www.cgdev.org/content/publications/detail/12219

  15. About the Author • Kimberly Ann Elliott is a senior fellow at the Center for Global Development and the author or co-author of numerous books and articles on trade policy and globalization, with a focus on the political economy of trade and the uses of economic leverage in international negotiations. She chaired the CGD working group that produced the report, Open Markets for the Poorest Countries: Trade Preferences that Work. Her most recent book, Delivering on Doha: Farm Trade and the Poor, was copublished in July 2006 by CGD and the Peterson Institute for International Economics.

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