NCGA, U.S. Ag Trade Coalition Calls for Balanced Agreement in WTO Trade Talks (5-15-06)

Emphasizing a balanced agreement is essential to a successful conclusion of the World Trade Organization (WTO) Doha Round agricultural negotiations, the Ag Trade Coalition, of which the National Corn Growers Association (NCGA) is a member, issued a statement last week. The coalition is supporting an ambitious and balanced outcome in the areas of market access, domestic support and export competition.

The coalition is made up of more than 100 U.S.-based associations representing agricultural producers, processors and agribusinesses, as well as individual agribusiness companies, state departments of agriculture and organizations with specific agricultural interests.

“The advancement of these negotiations is important, but the U.S. agriculture industry cannot support an outcome that is harmful to the U.S. economy and market competitiveness and to other countries’ growth,” said Bob Bowman, NCGA Joint Trade Policy A-Team chairman. “Negotiations that look at the global picture, especially the developing countries’ economies, must be pursued.”

The coalition is seeking reform in the Doha Round that includes: substantial and ambitious expansion in market access on a fair and transparent basis through aggressive tariff reduction and tariff-quota expansion; the meaningful and substantial reduction of trade-distorting domestic support; the elimination of export subsidies; and disciplines on export credits, the monopoly powers of state trading enterprises, differential export taxes and food aid only to the extent necessary to prevent such aid from distorting commercial markets.

“These objectives can only be realized by a comprehensive and balanced approach to the agricultural negotiations as outlined in the framework agreement,” the coalition said in its statement. “The real potential in these negotiations is in lowering tariff barriers to improve market access for all nations. Excessive ‘sensitive’ and ‘special’ product designations will only work to minimize market access gains.”

The coalition also urged the WTO members to reinvigorate negotiations in line with the Doha mandate agreed to by all ministers in 2001 to expand agricultural trade, emphasizing that all nations must contribute to a successful, trade-enhancing negotiation. The group also stated that Congress, in addition to the U.S. agriculture industry, will not support an agreement that provides minimal gains and reforms.

The WTO talks during the Geneva mission addressed the global trade-related issues and were a significant step in coming to an agreement; however, there are still questions lingering on an agreement to restrict protections for special products, such as rice and sugar, as well as the issue of no restriction on protection against import surges.

The WTO missed the April 30 deadline for reaching an agreement on tariff reductions due in part to the European Union’s refusal to open its member countries’ markets to increased exports of U.S. agricultural products.

“The time to come to an agreement is coming closer, however, we are optimistic that the WTO will reach a new agreement in the Doha Round by the end of this year,” said Bowman.

An agreement must be completed and submitted to the U.S. Congress before President George W. Bush’s trade promotion authority expires in July 2007.

To ready the statement in its entirety, please click here.