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The challenges to meeting the growing global food demand—population and income growth and supply uncertainties complicated by climate change, environmental pressures, and water scarcity—all point to the increasing importance of trade and the need for a more, not less, open trading system. Growth in agricultural trade has been facilitated in part through the rules-based system established under the World Trade Organization (WTO), particularly the Uruguay Round Agreement on Agriculture (AoA). The AoA was implemented in 1995 and brought substantial discipline to the areas of market access, domestic support, and export competition. However, progress since the Uruguay Round has been limited. While the Doha Development Agenda (DDA) was launched with much anticipation in 2001, members failed to reach agreement in July 2008 and the trade agenda in Geneva has since advanced slowly. Despite the best efforts of many, the negotiating intensity seen in late 2007 and 2008 has largely dissipated, in part due to the global recession and the inevitable changes in governments that sometime shift the focus of negotiations. Serious efforts were made to renew the negotiations, but in the end, members have had to be content with harvesting the low-hanging fruit, such as trade facilitation and export competition. Although there have been significant accomplishments, they represent but a small portion of what was on the table during the DDA negotiations. In addition, negotiated settlements on the tougher issues, such as market access and domestic support, have become more difficult to obtain in isolation. The recent experience at the WTO’s Eleventh Ministerial Conference in Buenos Aires highlights the difficulties of reaching a negotiated settlement on domestic support in isolation from, say, market access. Given the increasing importance of trade in addressing food security needs and its critical role in efforts to eliminate malnutrition and hunger by 2030, achieving further progress in the liberalization of world trade is of paramount importance.
The Farm War of the early 1980s was rooted in the political economy of agriculture, but it was a crisis for the international trading system. The war was evident in disruptions on the farm and in world markets, in conflicts among major governments, and in disagreements in international organizations. Wolfe shows how and why battles over agricultural protectionism were largely resolved through the Uruguay Round of GATT negotiations, demonstrating that the global economy is not self-regulating: it needs institutions if it is to be stable.
In 1987, the two Institutes brought together a number of persons with considerable experience in agricultural policy from 20 countries representing both importers and exporters. They participated in 4 meetings and approved the consensus policy statement published here with the background papers developed for the meetings. These background studies include suggestions for reforming government policies worldwide; a North American and European Community approach to decoupling the policy decisions that affect production from those that are pursued on social or environmental grounds; agriculture in GATT negotiations and developing countries; and exchange rates and their role in agricultural trade issues.
The World Trade Organization’s Doha Round of trade talks has been plagued by a lack of concrete progress toward establishing a fair and harmonious agricultural trading system. Because the results of the Doha Round could have far-reaching implications for the trade and economic prospects of developing countries in the twenty-first century, it is critical for these countries to fully understand the issues involved in the negotiations on agriculture. However, there has been no authoritative analysis of the rules and modalities on which governments of developing countries can rely. This book, coauthored by an insider to the trade talks that led to the establishment of the WTO, fills this gap. The volume begins with a detailed analysis of the provisions of the WTO’s Agreement on Agriculture and the modalities of the negotiations. It examines the implementation experience of key members of the WTO, then traces the developments in the negotiations up to the recent impasse. In light of these considerations, and on the basis of a case study of India, the authors propose various elements of a negotiating position and strategy for developing countries. The authors offer tough but realistic recommendations regarding tariffs, market access, treatment of sensitive or special products, and other aspects of international trade. This book will be of particular interest to researchers and practitioners as well as students seeking in-depth knowledge of the recent history of agricultural trade talks.
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