Doha Meetings End, Round Launched

November 15, 2001

The 4th Ministerial Conference of the World Trade Organization (WTO) ended with an agreement by the 142 member organization to launch a new agenda for trade negotiations aimed at expanding global markets and reducing trade barriers. Agriculture was central throughout the discussions because of its importance to nearly every WTO country. Among the last-minute necessities was convincing developing countries their wishes would be considered during the upcoming negotiations.

In a news briefing following the meetings, both U.S. Trade Representative Robert Zoellick and Agriculture Secretary Ann Veneman noted that an overriding objective of new trade talks is to gain greater market access for U.S. goods and services, including farm and food products. An oft-cited example is the high tariffs on food and agricultural products that average some 62% in markets outside the United States, and the new trade talks are intended to decrease them.

Negotiations are to conclude by Jan. 1, 2005. Negotiations over the next three years will center on expanding market access, reducing export subsidies, and reductions in trade-distorting domestic support. The mandate also guards against creating new loopholes in the rules that could be used to disguise trade-distorting measures.

The Grocery Manufacturers of America said it sees significant opportunities for growth among food, beverage and consumer product companies from a new round of negotiations. "Tariffs on agricultural products and processed foods around the world are the equivalent of a global tax on food," said GMA President and CEO, C. Manly Molpus. "Today's announcement is the first step in slashing unfair, punitive and protectionist taxes on food products."

GMA said U.S. consumers will benefit enormously from reduced tariffs in the food and agriculture sector, one of the most protected of all traded sectors. Each 1% reduction in tariffs will bring cost savings to manufacturers and consumers alike, the GMA statement added..

However, KYODO NEWS reported that the ministers agreed to consider developing countries' needs and interests in trade liberalization in a bid to encourage them to actively participate in new trade talks. In a document on implementation-related issues and concerns the ministers from the 142 WTO members said they are ''mindful of the need to ensure that the (multilateral trading) system responds fully to the needs and interests of all participants.''

The ministers are also ''determined to take concrete action to address issues and concerns that have been raised by many developing-country members regarding the implementation of some WTO agreements and decisions,'' says the document. The document covers a variety of issues including agriculture, textiles and clothing, technical barriers and trade-related investment measures. Some developing countries were reluctant to launch new WTO trade talks because they had not been convinced of the benefits of further liberalization.

Developing states, accounting for more than 80% of WTO membership, have said they are struggling to implement existing rules and obligations agreed to in the previous 1994 Uruguay Round trade accord.