RL33144
WTO Doha Round: The Agricultural Negotiations
January 12, 2006
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Summary
The pace of negotiations in the Doha Round of multilateral trade negotiations quickened in October 2005 as the December Hong Kong Ministerial Conference of the World Trade Organization (WTO) approached. At Hong Kong, however, while WTO members agreed on a broad outline of negotiating objectives for further liberalizing global trade in agriculture, industry and services, they made only limited progress in determining precise numerical formulas (known as modalities) for meeting the Round's aims. WTO members agreed to intensify efforts to reach agreement on modalities and conclude Doha Round negotiations by the end of 2006. The WTO is unique among the various fora of international trade negotiations in that it brings together its entire 149-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. Regarding 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. Because TPA is set to expire on July 1, 2007, the Administration and trade proponents are feeling considerable pressure to conclude the Doha Round prior to TPA expiry. Current U.S. farm legislation (the 2002 farm bill) also 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 assesses the current status of agricultural negotiations in the Doha Round; traces the developments leading up to the Hong Kong Ministerial; examines the major agricultural negotiating proposals; discusses the potential effects of a successful Doha Round agreement on global trade, income, U.S. farm policy, and U.S. agriculture; and provides background on the WTO, the Doha Round, the key negotiating groups, and a schedule of historical and upcoming events relevant to the agricultural negotiations. The report will be updated.
