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The United States is pursuing trade liberalization with many developed and developing countries. Having access to growing foreign agriculture markets is essential to U.S. farmers who produce far more than domestic buyers can consume.

Trade negotiations and policies boost prospects for food and agricultural markets in developing countries by stimulating economic growth and development. With access to growing markets, American producers will have greater opportunities to grow and develop their businesses.

For developing country consumers, liberalized agricultural trade policies mean better and more diverse diets and rising incomes that foster development and growth. For American consumers, liberalized agricultural trade policies mean even greater access to the bounty of global markets.

Efforts to Liberalize Trade Through Policy Reform

Prior to 2001, international trade negotiations have focused mostly on manufactured goods. In 2001, World Trade Organization (WTO) members, including the United States, met in Doha, Qatar, and agreed to begin talks to lower tariffs and other barriers to free and fair agricultural trade.

The United States believes this is a historic opportunity not only to help its farmers, ranchers, and growers export more, but also to improve the lives of producers and consumers in the developing world and around the globe. Therefore, the United States has worked diligently to negotiate a fair agreement on export competition, market access, and domestic support. Taken as a package, the U.S. proposal would result in reductions in trade barriers for agricultural products, greater equity in world agriculture, and expanding growth opportunities for the sale of agricultural products.

The Geneva Framework
In late July, negotiators in Geneva representing the United States and other countries were able to reach agreement on a framework that will enable the Doha Round talks to proceed to a conclusion.

-- From USTR (all .PDF | require Adobe Acrobat Reader)
-- Press Release (08/01/04) -- Press Conference Statement (08/01/04)
-- Fact Sheet (07/31/04) -- Agreement: Final Text (07/31/04)
-- USDA Secretary Veneman Praises U.S. Negotiating Team on the World Trade Organization Trade Accord

The Cancun Ministerial
In September 2003, the members of the WTO met in Cancun, Mexico in an attempt to restart the Doha-round talks.
USTR Robert B. Zoellick and USDA Secretary Ann M. Veneman Hold Press Conference as WTO Ministerial in Cancún Concludes (09/14/03)
         --  More information about the Cancún Ministerial

In March of 2003, negotiators failed to reach deadlines in the Doha round negotiations.
Joint Comment on the Doha Development Agenda Negotiations (03/31/03)
 -- "Not Surprised" WTO Misses Agriculture Trade Deadline (Commentary; 03/31)

The Harbinson Draft
As part of the negotiation process, the chairman of the negotiations, Stuart Harbinson, advanced a draft agreement in February of 2003 that summed up the negotiation positions of the various parties.
Chairman Harbinson's REVISED First Draft on WTO Negotiations on Agriculture (03/18/03) Chairman Harbinson's First Draft on WTO Negotiations on Agriculture (02/12/03)

More on the Doha round and U.S. participation in the WTO.

Trade Policy Today: Building on NAFTA and the Uruguay Round

Two major trade agreements, both taking effect in the mid-1990s, shape agricultural trade today:

• The North American Free Trade Agreement (NAFTA), enacted in 1994; and
  
  
• The Uruguay Round Agreement on Agriculture (URAA), enacted in 1995.

NAFTA: Regional and bilateral trade agreements form an integral part of the U.S. approach to international trade policy. Through NAFTA, Canada, Mexico, and the United States have eliminated numerous barriers to the economic integration of these three countries. As a result of NAFTA, the United States has much closer economic ties with Canada and Mexico.

With the hope of building on NAFTA’s success, the United States has entered negotiations with 33 other nations in the Western Hemisphere to form a Free Trade Area of the Americas (FTAA). The United States has forged bilateral free trade agreements with Israel, Jordan, Singapore, and Chile, and it is committed to securing similar bilateral or regional agreements with Morocco, Central America, and South Africa, among others.

Uruguay Round: The Uruguay Round was an important first step by members of the World Trade Organization toward liberalizing agricultural trade policies. Prior to the Uruguay Round, agriculture had generally been excluded in trade negotiations.

The Uruguay Round made four major contributions to liberalizing agricultural trade:

• Rules-based trade was established for agriculture, with a core framework:
  • Market access;
  • Domestic supports; and
  • Export competition.
    
    
• Transparent rules-based approach to market access was established that converted nontariff barriers, including variable levies and quotas, into bound tariffs. This process provides a framework that allows the negotiation of initial and future tariff cuts.
  
  
• Reduced use of export subsidies, decreasing both the spending on export subsidies and the volume of subsidized goods. Previously, export subsidies affected agricultural trade by reducing world prices, hurting farmers in both the importing country and in non-subsidizing exporting countries.
  
  
• Yielded modest reductions in domestic support for agriculture by developed countries. The level of domestic support in the United States, Europe, and Japan is lower than it was during the 1986-88 base period that established domestic support ceilings for the Uruguay Round.

Also, new rules for sanitary and phytosanitary (SPS) measures were established by the Uruguay Round, as well as other technical regulations in the SPS and the Technical Barriers to Trade (TBT) Agreements.

Last modified: Wednesday, March 24, 2004