WTO VS GATT

WTO VS GATT

1. GATT Uruguay Round

   • Export subsidies reduced
     • Cut in domestic subsidies of 20% from 1986-1988 base
       • No change on domestic and export subsidies for 9 years provided the criteria of agreement are met
   • Tariffs cut by 24-36% & 10% for developing countries
     • All non-tariff barriers to be converted to tariffs and then reduced
       • But because of base year actually allowed for higher levels of protection
   • 1 billion dollar gain for AUS ag from this round
   • Overestimation of benefits

2. Doha Round

   • Negotiations issued in early 2000
   • Reforming ag trade by boosting market access and cutting subsidies
   • 2005: reached deal for deadline to eliminate ag export subsidies by 2013
   • 2007: broke down over the disagreement on access to farm subsidies in developed countries
     • 2007 also broke down
   • Post 2008 draft agreement:
     • Trade Domestic Support cut
       • Decoupled income support
         •  Tariff cuts for developed countries rise from 50% for tariffs below 20% to 70% for tariffs above 75%  For developing countries cuts two thirds of developed countries
           • Export subsidies eliminated by the end of 2013
     • Special considerations for developing countries

3. Previous rounds

   • Dillion & Kennedy
     • 1st real exposure of Ag in MTN and occurred at the time of the EU and CAP
     • Kennedy round=opposing views of EU & US, US wanted to lower support levies and remove variable levies. EU wanted to bind existing support and organise world nmarkets
   • Tokyo
     • Lasted for a long time because of ag but no deal on ag because of inability to deal with non-tariff measures
     • reversion to bilateral trade negotiations