overview
The Uruguay Round Agreement on Agriculture (AoA) marked a turning point in the history of the multilateral trading system by subjecting agricultural trade to essentially the same rules that discipline trade in industrial goods. For the first time, WTO members committed to reducing agricultural tariffs, export subsidies, and domestic support. The AoA also committed members to start negotiations on continuing these reforms beginning in 2000.

With the signing of the Doha Ministerial Declaration in November 2001, objectives and deadlines for the current round of multilateral negotiations were set. While some progress has been made, little compromise has been reached on core issues regarding commitments to further expand market access, eliminate export subsidies, and reduce domestic support. In an effort to revive negotiations prior to the Fifth WTO Ministerial Conference in Cancun, Mexico, in September 2003, the United States and the European Union unveiled a joint proposal on August 13, 2003 aimed at bridging the gaps in their approaches to liberalizing agricultural trade (the original U.S. proposal was released in 2002.) More overview...

• Uruguay Round Agreement on Agriculture
• Beyond the Agreement on Agriculture
• The Doha Development Agenda
• Developing countries in the WTO
• Commodity market issues in the WTO
  

features
Multlateralism and Regionalism: Dual Strategies for Trade Reform. The United States is pursuing trade liberalization through regional agreements such as the Free Trade Area of the Americas, and through multilateral negotiations via the World Trade Organization. Why does the United States do both simultaneously?

WTO: Competing Policy Issues and Agendas for Agricultural Trade. Sponsored by ERS and the Farm Foundation, this conference on September 17, 2003, brought together researchers, policymakers, and industry representatives to assess trade policy issues and their implications. In addition to WTO negotiations, other trade policy developments such as the proliferation of bilateral free trade agreements and enlargement of the European Union are likely to have lasting impacts on agricultural producers, consumers, industry, and global food markets.

recommended readings
China Exports Outpace Imports During WTO Year One. China became a larger net exporter of agricultural products during calendar year 2002. China is emerging as a significant importer of consumer-oriented food products.

Decoupled Payments: Household Income Transfers in Contemporary U.S. Agriculture. The U.S. experience with production flexibility contracts (PFC) under the 1996 Farm Act indicates that PFC payments improved the well-being of participating farm households, with well-being defined to encompass income, wealth, and consumption, as well as labor/leisure choices. The decoupled payments—not tied to production or prices—have raised land values but have had minimal impact on production and, thus, on trade.

Regulatory Barriers in International Horticultural Markets. Sanitary and phytosanitary measures affect patterns of trade in horticultural products by increasing the costs of imports or prohibiting them entirely. Since 1995, WTO initiated reforms have lowered many unnecessary barriers to horticultural trade, primarily through requirements that regulations be transparent and based on science.

The Road Ahead: Agricultural Policy Reform in the WTO—Summary Report. Agricultural trade barriers and producer subsidies inflict real costs on the countries that use these policies and on their trade partners. If trade negotiations resulted in full elimination of agricultural price-distorting policies—market access limitations, domestic support to producers, and export subsidies—the results would include an annual increase in world welfare, or consumer purchasing power, of $56 billion over the next 15 years.

See all recommended readings...

recommended data products
WTO Agricultural Trade Policy Commitments Database contains data on implementation of trade policy commitments by WTO member countries. Data on domestic support, export subsidies, and tariffs are organized for comparison across countries. This queriable database offers various options for viewing and downloading data.

Foreign Agricultural Trade of the United States (FATUS) provides U.S. agricultural exports and imports, volume and value, by country, by commodity, and by calendar year, fiscal year, and month, for varying periods, such as 1935 to the present or 1989 to the present. Updated monthly or annually.

glossaries
Definitions of terms used in this briefing room
A Glossary of trade terms

related briefing rooms
U.S. agricultural trade
Global resources and productivity
North american free trade agreement (NAFTA)

related links
Foreign Agricultural Service (FAS). Official site provides data on current U.S. trade; data on supply and demand (including imports and exports) for major trading partners; current world market and trade reports (and attache reports); and information on the agricultural trade and agricultural policies of foreign countries.

United States Trade Representative (USTR). USTR is responsible for developing and implementing trade policies which promote world growth, support efforts to protect the environment and advance core labor standards.

World Trade Organization. The WTO is the only global international organization dealing with the rules of trade between nations. Official site includes information about the organization and its membership, and access to official WTO documents.

for more information, contact: John Wainio
web administration: webadmin@ers.usda.gov
page updated: January 15, 2004