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• National Agricultural Law Center

Summary

The pace of negotiations in the Doha Round of multilateral trade negotiations has quickened as the mid-December Hong Kong Ministerial Conference of the World Trade Organization (WTO) approaches. At Hong Kong, WTO member countries are expected to reach agreements on specific measures (known as modalities) to expand global trade in agricultural and industrial products and services and set the stage for intensive negotiations that would take place during 2006. Despite intense negotiations, agreements on modalities, especially for agriculture, have eluded negotiators. The WTO is unique among the various fora of international trade negotiations in that it brings together its entire 148-country membership to negotiate a common set of rules to govern international trade in agricultural products, industrial goods, and services. Agreement across such a large assemblage of participating nations and range of issues contributes significantly to consistency and harmonization of trade rules across countries. As to agriculture, because policy reform is addressed across three broadly inclusive fronts -- export competition, domestic support, and market access -- WTO negotiations provide a framework for give and take to help foster mutual agreement. As a result, the Doha Round represents an unusual opportunity for addressing most policy-induced distortions in international agricultural markets. The ongoing trade negotiations have entered a critical stage reflecting their convergence with two key U.S. policy events: the expiration in 2007 of both current U.S. farm legislation and of Trade Promotion Authority (TPA). Under TPA, if the Administration meets negotiating objectives established by Congress and satisfies consultation and notification requirements, then Congress would consider implementing legislation for a Doha Round agreement with limited debate, no amendments, and a straight up-or-down vote. TPA is set to expire on July 1, 2007, and, although Congress could extend the deadline, there is concern that such a vote would be both rancorous and uncertain in outcome. Hence, the Administration and trade proponents are feeling considerable pressure to conclude the Doha Round prior to TPA expiry. In addition, current U.S. farm legislation (the 2002 farm bill) is set to expire in 2007. Prior to its expiration, Congress and the Administration will engage in a public policy debate about the goals of U.S. farm policy and the measures best suited to achieve those goals. Many policymakers are concerned about fashioning U.S. farm policy to be consistent with any new WTO trade agreement. As a result, many, but not all, U.S. policy makers have a strong interest in achieving a new trade agreement prior to the development of new U.S. farm policy. This report provides background information on the WTO, the Doha Round, the key negotiating groups, and a schedule of historical and upcoming events relevant to the agricultural negotiations; reviews the agreements reached in the July 2004 framework and identifies issues that remain to be resolved by the Hong Kong Ministerial in December; discusses and compares the major agricultural negotiating proposals; and discusses the potential effects of an agricultural agreement on U.S. farm policy. The report will be updated.

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