Market Access, Export Subsidies, Domestic Support and the WTO Negociations: a Review and Synthesis

Marie-Ange Véganzonès

No 200008, Working Papers from CERDI

Abstract: The aim of this review is to provide a preliminary assessment of the implementation of the Uruguay Round Agreement on Agriculture (URAA) in order to highlight the directions that might take the next stage of reform. A particular focus is made on the Quads countries. Our findings are that, in spite of the URAA arrangements, tariffs on agricultural products are still three times higher on average than on manufactured products. The tariffication process has often led to prohibitive duties and to an increase in tariff dispersion. Tariff rate quotas (TRQs) have not always been filled and market access has shown only limited improvement. Export subsidies still exist and domestic farm policies have often experienced only minor changes to match the Agreement requirements. These points, which have been identified as live issues for the next Round of Negotiations, are then debated in the rest of the document. We discuss in particular the modalities of ameliorating market access, with the definition of a more effective tariff cut and the improvement of TRQs' administration and efficiency. As far as exports are concerned, we tackle the issue of effectiveness of a new reduction of export subsidies, the status of export credit and of export restrictions. The more general question of state involvement in agricultural trade is also discussed. Finally, we pose the question of a deepening of the reduction of support to agriculture, with an elimination of the "blue box" and a new definition of the "green box" content.

Keywords: WTO; Trade negotiations; Agriculture; Market access; Export subsidies; Support to agriculture. (search for similar items in EconPapers)
Pages: 49
Date: 2000
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