1

2
lood ollcy
W Cvervlew of food pollcy and food securlLy
W lnLroducLlon Lo Lrade
W 4 case sLudles of dlfferenL Lrade pollcles
lmporL Lax korea rlce
LxporL subsldyLu pork
lmporL Subsldy LgypL wheaL
LxporL Lax Cameroon cocoa
W uS larm 8lll
W ollLlcal Lconomy of food pollcy
W lmpllcaLlons for world markeLs

-aLlonal lood SecurlLy

W Cov'Ls can lnfluence boLh sldes of equaLlon
reduce populaLlon growLh
lncrease food producLlon Lhrough Lech change
lnfrasLrucLure lnvesLmenLs
Lry Lo fosLer overall econ growLh
ln any lndlvldual year Lhey can make sure LhaL enough food
ls lmporLed Lo meeL any shorLfall ln producLlon by
borrowlng or negoLlaLlng food ald lf necessary
4
Food PoIicy GoaI
Low Income
Countries
High Income
Countries
'Appropriate"
Food Prices
import subsidies & export
taxes
import taxes or price/farm
income protection
Competitive
Markets
direct market controIs anti-trust reguIation
Adequate food
for all
food aid
targeted food handouts
weIfare or food stamps
Reduce food
needs
popuIation controI n.a.
Increase
domestic
supply
ruraI infrastructure
technoIogy deveIopment
preserve prod capacity
resource conservation
technoIogy deveIopment
Improve
food/health
interactions
heaIth services Iinked to
nutrition interventions,
fortification or
suppIementation
food safety reguIation,
nutrition education,
fortification

,ore food pollcy

W food pollcy can also lnclude
lmprovemenLs ln healLh educaLlon
access Lo land and credlL for Lhe poor
addresslng lnequlLles ln global Lradlng sysLem
provldlng a sLable macroeconomlc envlronmenL
W 8ecause food relaLes Lo healLh poverLy and resource
lssues food pollcy can cover a wlde range of pollcles
2
W lmporL 1ax

Clobal overvlew of pollcy

W Pow can gov'Ls cause domesLlc food prlces Lo dlffer from
world food prlces?
1axes or subsldles
llxed llmlLs on lmporLs or exporLs
CovL monopoly conLrol of Lrade
W Low food prlces beneflL consumers and lncrease food securlLy
for purchaslng households
W Plgh food prlces encourage food supply and lncrease food
securlLy for low lncome producer households
W Whlch wlll a counLry chose?

Clobal overvlew of pollcy

W lmpott 1oxes
reduce world demand
lncrease world supply
lower world prlces
W lmpott toxes wldely used ln mlddle and hlgh lncome
counLrles
W lnLervenLlons reduce global efflclency of resource use ln
agrlculLure and reduce global economlc ouLpuL
-omlnal roLecLlon CoefflclenL (-C)
domesLlc prlce/world prlce

lmporL Laxes (or quoLas)

W ka|se domest|c pr|ces
W Increase domest|c product|on
W keduce domest|c consumpt|on
W keduce |mports
W roducers ga|n and consumers |ose
10
lmporL Laxes conL
W |c|ency |osses
va|ue o domest|c resources used to produce qs2qs1 that have
h|gher va|ue |n other k|nds o product|on
|oss to consumers rea| |ncome that |s not transerred e|sewhere |n
economy
W Decreases demand |n wor|d markets
W uotas were common but not a||owed under 199S trade
agreement or ag
W amp|es
8ee |n Iapan (NC 1S)
Sugar |n US (NC 14)

Case sLudy
korean rlce
As economy developed
8lce less lmporLanL Lo consumers only of expendlLures
Ag less lmporLanL only employed ln ag
SLlll lmporLanL Lo farmers' lncome buL cosLs of producLlon noL
compeLlLlve
8apld economlc developmenL slnce
10s
Land scarce counLry decllnlng
comparaLlve advanLage ln ag and
lncreaslng comparaLlve advanLage ln
lndusLrlal goods
korean 8lce
W 8esLrlcLed lmporLs -C abouL 0
W Cnly rlce proLecLed aL Lhls level overall food self
sufflclency decllnlng buL very llLLle rlce lmporLs
W 1hls lncreases farm lncome for Lhose remalnlng rural
secLor noL very cosLly Lo lndlvldual consumers
preserves rlce land
W WhaL are Lhe pro's and con's of Lhls pollcy from
korea's perspecLlve?
korean 8lce
W 1 W1C agreemenL means lmporL barrlers
musL evenLually be dlsmanLled and proLecLlon
reduced
W korea has reslsLed lmplemenLaLlon buL
lmporLs small amounLs of low quallLy rlce
W ls rlce ls speclal" ln Lrade negoLlaLlons?
4
W LxporL Subsldy
Case sLudy Lu ork
W CA framework lnsulaLed Lu markeLs from world markeLs
W Surplus producLlon ls exporLed wlLh resLlLuLlon Lo make up
dlfference beLween lower world prlce and hlgher domesLlc
prlce -C mlghL be 1
W 1 W1C puL llmlLs on volume and value
@he U Common
Agr|cu|tura| o||cy (CA)
W lnLroduced ln 12
W urpose was Lo supporL domesLlc prlces aL hlgh
levels lnsulaLed from world markeLs
urchases aL lnLervenLlon prlces (l)
lmporLs sub[ecL Lo varlable levy dlfference
beLween l and W
LxporLs recelve subsldy paymenL Lo make up
dlfference beLween l and W
W unusual ln scope covers all of ag
W ollLlcal moLlvaLlons
lood securlLy (posL WWll)
Lack of comparaLlve advanLage ln ag
Lconomles less able Lo employ large rural pop
8ural areas Lled Lo culLural / scenlc amenlLles
lncome supporL makes lL easler Lo regulaLe anlmal welfare
food safeLy
W ,ulLlfuncLlonallLy" ldea LhaL ag has mulLlple
ob[ecLlves
|story o the CA
1he Lu CA and LxporL Subsldles
W J expott sobslJles?
W roLecLlon led Lo blg exporL surpluses as
supply expanded beyond demand
W Covered mosL meaL gralns and dalry
producLlon
W Subsldlzed exporLs from Lu were large enough
Lo lower world prlces for some producLs ln
10s and 10s
8ecenL reforms
W 8ecenL reforms reduced dlsLorLlons from CA
W lnLervenLlon prlces lowered so closer Lo world
prlces ln early 10s
W uecoupled paymenLs ln 200
W CosL ls sLlll Luro1000 per famlly
Lu ork rogram
W SeL hlgh lnLervenLlon prlce Lo cover hlgh proLecLed
cosL of feeds
W Cnly very small lmporLs allowed
W LxporLers recelve resLlLuLlon paymenL LhaL varles by
pork producL buL unlform for all desLlnaLlons
W uenmark ls mosL lmporLanL exporLer and compeLes
wlLh uS ln !apan and L Luropean markeLs
D Otqoolc plq
fotmttp//wwwcooottlfecook
Changes Lo Lu ork
1 W1C AgreemenL on Ag
LlmlLed exporL volume and subsldy
value
LlmlL decllned Lo 2001
ConverLed lmporL quoLas Lo Larlffs
and Larlffs Lo decrease over Llme
seL a small amounL () Lo be
lmporLed Larlfffree
CurrenL negoLlaLlons Lu (and uS) have
agreed Lo forego LxporL Subsldles
ools llq lotm
ttp//wwwJbmccook

W lmporL Subsldy
lmporL subsldy
W ower domest|c pr|ces
W keduce domest|c product|on
W Increase domest|c consumpt|on
W Increase |mports
W roducers |ose and consumers ga|n
lmporL Subsldy
W |c|ency |osses
|oss o producer surp|us because domest|c resources not ut|||zed |n
produc|ng h|ghest va|ue good
|oss o govt revenue that does not bene|t consumers s|nce qd2
wou|d not be purchased at wor|d pr|ce
W Usua||y ach|eved |mp||c|t|y through government monopo|y
on |mports
W Increase demand |n wor|d markets
W amp|es
wheat |n gypt (NC 06)
r|ce |n Indones|a (NC 08S)
Case SLudy LgypL WheaL
W Scarce buL hlghly producLlve land
W Plgh valued exporLs llke coLLon
W Palf populaLlon sLlll ln ag
W WheaL ls maln sLaple and lmporLs subsldlzed so LhaL
-C from 0 Lo 0
W LgypL govL spends $400
Lo $ 0 mllllon on subsldy
W Also conLrolled mllllng
and baklng
W role now reduced
Case SLudy LgypL WheaL
W Subsldy very popular wlLh urban
populaLlon
W roducers lose buL have oLher hlgh valued
alLernaLlves
W CovL sLuck wlLh hlgh cosL
W 8esource mlsallocaLlon
,osL cons surplus galns noL Lo poor
Leads Lo wasLe of bread
lncreased prlces would lead Lo subsLlLuLlons
more efflclenL land use
Aslde on LgypLlon CoLLon and W1C hLLp//wwwmlddleeasL
onllnecom/engllsh/buslness/?ld40
0 AkS AI@k 8kAD kIC@S @ kICkM MCVS ICkWAkD
hLLp//wwwdallysLaregypLcom/arLlcleaspx?ArLlclelu112

W LxporL 1ax
LxporL 1ax
W owers domest|c pr|ce
W keduces domest|c product|on
W Increases domest|c consumpt|on
W Decreases eports
W roducers |ose and consumers ga|n
LxporL 1ax
W |c|ency |osses
resources that wou|d have been used to produce qs1qs2 moved |nto
|ower va|ued uses
consumers buy|ng qd2qd1 or |ower pr|ce than ore|gn buyers and
not a|| ga|n |s surp|us
W Decreases supp|y |n wor|d markets
W Cten ach|eved through govt monopo|y on eports
W amp|es
Corn |n Argent|na (08S)
Cocoa |n Cameroon (04S)
Case SLudy Cameroon Cocoa
W opulaLlon ls mosLly rural and
depends on ag
W Ag accounLs for 40 of exporL
earnlngs
W ,osLly selfsufflclenL ln LradlLlonal
food sLaples
W Cocoa ls LradlLlonal exporL crop
1ree crop grown on small farms
1ree sLock old and needs replanLlng
roducLlon and exporLs ln long run
decllne
PlsLory of Cocoa ln
Cameroon
W Cocoa prlce pollcy esLabllshed under lrench colonlal
rule
W CovL agency (mkLg board) seLs flxed producer prlce
W 8uys all cocoa and sells overseas (monopoly wlLhln
counLry)
W Supposed Lo relnvesL Laxes ln secLor buL lnsLead ls
source of general revenue
W -C 4
LffecL of cocoa pollcy
Adds Lo govL revenues
8educes producer earnlngs and depress rural lncome
ConLrlbuLes Lo long run cocoa decllne less lnvesLmenL ln
ag secLor and more mlgraLlon Lo urban areas
W Why keep Lhls pollcy?
roducers wldely dlspersed llLLle power
1ree crop supply lnelasLlc ln medlum run so looks llke good
way Lo ralse Lax revenue
Summary
W Plgh lncome counLrles
lmporL Larlff (or Lax)
LxporL Subsldy
W Low(er) lncome counLrles
lmporL subsldy
LxporL Lax
lmporLer affecLs Lu
LxporLer affecLs LS
1ax shlfLs curve ln
Subsldy shlfLs curve ouL
1rade ollcy Summary
lmporLer
W 1arlff (or lmporL Lax)
ShlfLs Lu ln
lncreases domesLlc prlce and
(lf large) decreases world prlce
used by wealLhler counLrles Lo
proLecL ag
eg korean rlce
W lmporL subsldy
ShlfLs Lu ouL
uecreases domesLlc prlce and
(lf large) lncreases world prlce
used by developlng counLrles
Lo beneflL consumers
eg LgypLlan wheaL
LxporLer
W LxporL subsldy
ShlfLs LS ouL
lncreases domesLlc prlce and
(lf large) decreases world prlce
used by developed counLrles Lo
beneflL producers
eg Lu pork uS coLLon
W LxporL Lax
ShlfLs LS ln
uecreases domesLlc prlce and lf
large lncreases world prlce
used by developlng counLrles Lo
ralse governmenL revenue
and/or proLecL consumers
eg Cameroon cocoa
ollLlcal Lconomy of Ag roLecLlon
J Jo we obsetve ow ptlces fot oq lo ow
locome cooottles ooJ lqet ptlces lo lq locome
cooottles?
W As economles develop
Ag's share of Cu falls
Ag's share of employmenL falls
lood prlces less lmporLanL Lo nonfarm households
(remember Lngel's law)
uecllne ln ag comparaLlve advanLage (unless land
abundanL)
uecllne ln rural cosLs of communlcaLlon
ollLlcal Lconomy of Ag roLecLlon
W ln LuCs ag Laxed because
Small urban ellLe lobbles for cheap food
Large ag secLor ls prlmary source of govL revenue
W uurlng process of developmenL
SLarL Lo subsldlze ag Lo slow down rural Lo urban
mlgraLlon
,alnLaln farm secLor for food securlLy
ollLlcal Lconomy of Ag roLecLlon
W ln uCs ag ls proLecLed because
Large urban secLor Lo pay for food prlce or Lax lncrease
lood prlces less lmporLanL Lo consumers
Small number of farmers can lobby for proLecLlon
lncreased food lmporLs wlLh decllnlng comparaLlve
advanLage provlde food securlLy moLlvaLlon
uS AgrlculLural ollcy
ACL 21
-ov 2 2010
8ackground
W uS larm 8llls every years (or so)
W lnclude agrlculLural subsldles nuLrlLlon pollcy
and conservaLlon programs
W LasL larm 8lll 200 (lood ConservaLlon and
Lnergy AcL)
W CurrenLly dlscusslng 201 blll
W LoLs of $$ aL sLake ($0 8 over yrs)
CuLllne
W 8ackground PlsLory
W 200 larm 8lll
larm subsldles (commodlLy LlLle)
ConservaLlon programs
-uLrlLlon programs
1rade lmpllcaLlons
A llLLle hlsLory
1 AgrlculLural Ad[usLmenL AcL
year blll
Crop lnsurance and deflclency paymenLs
-onrecourse loans for coLLon and corn
markeLlng quoLas for coLLon and Lobacco
1 Soll and uomesLlc AlloLmenL AcL
ald farmers Lo swlLch from solldepleLlng crops (corn coLLon) Lo
grasses and legumes
1 AgrlculLural ,arkeLlng AcL
,arkeLlng orders 2/ ma[orlLy farmer voLe needed Lhen can seL up
prlcedlscrlmlnaLlon beLween markeLs Lg lemons mllk and peanuLs
,lnlmum prlce for mllk seL
llrsL omnlbus blll ln 1
1 Second AgrlculLural Ad[usLmenL AcL
Lxpanded nonrecourse loans for corn wheaL and coLLon and crop
lnsurance for wheaL
Lxpanded deflclency paymenLs
,eanL governmenL collecLed graln sLocks
lncluded soll conservaLlon blll
SeL lnpuL Lo ouLpuL raLlo parlLy" used as a prlce floor unLll 1
1 lood sLamp program
LxLra sLamps glven for crops ln surplus
Lnded ln 14
8evlved as a plloL program ln 11
lormallzed ln 14
llrsL of Lhe modern" farm bllls
10 AgrlculLural Ad[usLmenL AcL
1argeL prlce ueflclency aymenL
Loan raLe
W 1 lood SecurlLy AcL
lncluded ConservaLlon 8eserve rogram (C8)
SeL Aslde (reduced supply)
LxporL LnhancemenL rogram (LL)
W 10 lAl8
Allowed Loan ueflclency aymenLs"
1hreaLened Lo lncrease LL unless Lrade agreemenL reached
W 1
Plgh crop prlces
,ove Lo less producLlon dlsLorLlng programs
SubsLanLlal lnLervenLlon
,ore recenL developmenLs
W 2002 larm 8lll
lncreased and expanded loan raLes Lo lnclude pulses
ConLlnued flxed paymenLs 8uL farmer's can'L swlLch Lo
frulL and vegeLable producLlon
CounLercycllcal paymenLs based on LargeL prlce and f
producLlon
Allowed deflnlLlon of fproducLlon Lo be updaLed
Angered Lradlng parLners (Lu had [usL reformed lLs ag
pollcy Lo be more Lrade and budgeLfrlendly)
200 CurrenL CommodlLy LlLle
W Cralns and ollseeds (wheaL corn graln sorghum barley oaLs
rlce upland coLLon soybeans and peanuLs)
ulrecL paymenLs
,arkeLlng AsslsLance Loans (lncludes dry peas lenLlls
chlckpeas)
CounLercycllcal paymenLs
AC8L
W ualry and sugar
ulrecL aymenLs
W lnLroduced ln 1 larm 8lll as compensaLlon" for
reducLlon ln prlce supporLs
W ALLracLlve as graln prlces hlgh
W Supposed Lo end buL conLlnued ln 2002 blll
W ,ade on pasL bose acres (land ln ellglble gralns and
ollseeds) from 11 updaLed ln 2002
W larmers recelve paymenL regardless of currenL land
use*
*excepL noL supposed Lo planL frulLs and vegeLables (broughL Lo you by
Callfornla farmers)
CounLercycllcal paymenLs
W -ew ln 2002 larm 8lll
W AfLer prlce supporLs decreased ln 1 yearly
'emergency' ald lnLroduced ln 1 1 2000
W ueclslon Lo lnsLlLuLlonallze 'emergency' ald
W ays ouL on base acres when prlce drops below
'LargeL'
Ag Crop 8evenue LlecLlon (AC8L)
W -ew ln 200
W CuaranLees 0 of yr olymplc ave sLaLe
yleld and 2 yr ave naLlonal prlce
W Clve up counLercycllcal paymenLs and agree Lo
reduced dlrecL paymenLs and markeLlng loans
8rlef PlsLory of ConservaLlon
Lhe early years
W 8eglns ln 10s
Land 8eLlremenL
W Ag ConservaLlon rogram 1 pald Lo swlLch from
solldepleLlng crops
1echnlcal AsslsLance
W Soll ConservaLlon Servlce 1
8egulaLlon/Compllance
W esLlclde regulaLlon 14
W Clean WaLer AcL Lndangered Specles AcL 12
1ypes of ConservaLlon rograms
Land
Retirement
Working Lands
Cost Share
Regulatory/
Compliance
Conservation
Reserve Program,
(CRP)

nvironmental Quality
!ncentives Program,
(Q!P)
Sodbuster/
Swampbuster
Wetlands Reserve
Program, (WRP)
Wildlife Habitat
!ncentives Program,
(WH!P)
Clean Water Act,
ndangered
Species Act

Pesticide
Regulation





Land reLlremenL
W WhaL?
W 101 year conLracLs for ldllng cropland
W Pow ,uch?
W 2 cenLs of every dlrecL conservaLlon $
W 2 max per counLy
W -o room lefL ln program
Land reLlremenL conL'd
W Why?
W soll eroslon
W slnce 1 based on LnvlronmenLal 8eneflLs lndex (eg
waLer hablLaL)
W supply reducLlon (subconLexL)
W Who?
W Cver Z of paymenLs go Lo people who are noL 'farmers'
Worklng Land rograms (eg LCl)
W WhaL?
W CosLshare program
W Lo 10 year conLracLs
W lundlng spllL beLween llvesLock and crops
W SLaLedeLermlned prlorlLy areas
W Pow much?
W 0000 conLracLs coverlng 4 mllllon acres
W backlog of 1000 appllcaLlons on mllllon acres
W CurrenL cosL $200 m
2002 and 200 larm 8llls
W locus on worklng lands" programs
20002 LCl fundlng lncreased ($200 m Lo $100
m) and lncreases per producer cap
ConservaLlon SecurlLy rogram (green paymenLs)
2002 uS larm 8lll conL'd
W Land reLlremenL
C8 cap lncreased (from 4 Lo 2 mllllon
acres)
uoubled W8 acreage cap
Crasslands 8eserve rogram (C8) Lo reLlre
pasLure
CS
W 1ler 1
Address 1 resource concern (boLh new and exlsLlng
pracLlces) year
of counLy renLal raLe (for speclflc land use) $20000
celllng
W 1ler 2
1 resource concern for LoLal operaLlon Lo 10 year
11 of counLy renLal raLe $000 celllng
W 1ler
All resource concerns for operaLlon Lo 10 year
20 of counLy renLal raLe $0000
-uLrlLlon 1lLle
W lood SLamp program
W Women lnfanL and Chlldren (WlC)
Summary 1he lood ConservaLlon Lnergy AcL of
200
W Wlnners
-uLrlLlon rograms +$101 bllllon
SpeclalLy Crops (frulLs vegeLables) $1 bllllon of new
money
ConservaLlon + $4 bllllon ln CS oLher programs
8loenergy (oLher Lhan cornbased) +$1 bllllon
uroughLprone sLaLes $ bllllon
W Losers
Cornbased eLhanol no new budgeLary supporL blenders'
Lax credlL reduced
Crop lnsurance lndusLry subsldy reduced
1axpayers
oslLlve 1rade ollcy Changes ln Lhe 200 larm
8lll
W 8epeals auLhorlLy for exporL subsldles (LxporL
LnhancemenL rogram)
W LllmlnaLes longLerm exporL credlL program
reforms exporL credlL guaranLee program
W AuLhorlzes small amounL of local purchase of food
ald near desLlnaLlon
W1C roblems wlLh 200 larm 8lll
W 8alse loan raLes and LargeL prlces whlle reduclng
dlrecL paymenLs
W AC8L creaLes addlLlonal large upslde poLenLlal lf
markeL prlces drop
W -o repeal of frulL vegeLable excluslon
W LxLends dalry exporL subsldles
W lalls Lo change coLLon program as requlred by W1C
8razll CoLLon Case reauLhorlzes equlvalenL Lo sLep
2" subsldy
W lncreases sugar supporL proLecLlonlsm
W ,andaLory CounLryofCrlgln Labellng (CCCL")?
W@C
1 W1C and Lhe uruguay 8ound AgreemenL
on AgrlculLure (u8AA)
W ConverLed lmporL quoLas Lo 1arlff 8aLe CuoLas (18Cs) whlch
and seL mlnlmum Larlfffree lmporL level ()
W SeL caps on Larlffs
W 8educed exporL subsldles
W LlmlLed domesLlc supporL
8lue 8ox subsldles wlLh seLasldes (mosLly Lu) Capped
Amber 8ox producLlon dlsLorLlng subsldles SLrong llmlLs for
commodlLyspeclflc e mlolmos exempLlon for subsldles under of
value Capped
Creen 8ox for mlnlmallydlsLorLlng subsldles lncludlng envlronmenLal
subsldles crop lnsurance no llmlL
W1C CoLLon ueclslon
W ,arkeLlng loans Lus and counLercycllcal paymenLs have
lnduced larger producLlon and exporLs LhaL suppressed"
world prlce of coLLon
W uS dlrecL paymenLs are noL decoupled (green box") slnce
reclplenLs are precluded from growlng frulLs and vegeLables
on land recelvlng paymenLs
W LxporL credlL guaranLees and sLep 2" paymenLs are banned
exporL subsldles
uoha 8ound Chronology
,lssed deadllne for resLarLlng ag negoLlaLlons
1 SeaLLle
-ov 2001 uoha ,lnlsLerlal ,eeLlng launched Lhe round
20020 lndlvldual counLry/reglon proposals buL no real negoLlaLlons
(posLurlng Lalklng pasL one anoLher)
SepL 200 Cancun ,lnlsLerlal ,eeLlng Lhe orlglnal deadllne for
compleLlon falled C20 became
rd
force
!uly 1 2004 lramework AgreemenL
CcL 10 200 uS roposal
uec 200 Pong kong ,lnlsLerlal
,eeLlng
!uly 200 !an 200 Chalrman's urafLs
-ov 0 200 ,lnlsLerlal ,eeLlng ln
Ceneva
8lg lood and Ag 1rade lssues
W Plgh Larlffs lncludlng Larlff peaks waLer ln Larlffs
and Larlff escalaLlon
W CuanLlLaLlve resLrlcLlons Lo lmporLs (18Cs*)
W Subsldles llnked Lo producLlon of speclflc
commodlLles
W LxporL subsldles
W SanlLary phyLosanlLary barrlers (only sclence
based)
*18C1arlff 8aLe CuoLa
WhaL lL would mean for
Amerlcan larmers
W very llLLle real reducLlon ln domesLlc supporL has been
offered
W 1he proposed 0 cuL ls from Lhe cop on noL acLual
LradedlsLorLlng paymenLs
W An overall" reducLlon commlLmenL ls from a very hlgh
number so reducLlon percenL would have Lo be very
large Lo have any lmpacL on Lhe acLual farm program
paymenLs Lhey recelve
W Any real cuL ln LradedlsLorLlng supporL can be made up
fully vla larger green box paymenLs
ueveloplng CounLry Concerns
W ueveloped counLrles are proLecLlonlsL ln producLs ln whlch
low lncome counLrles have a comparaLlve advanLage
Lg LexLlles fooLwear sugar rlce coLLon
W ueveloped ag subsldles lnduce larger producLlon and exporLs
of Lhelr mosL subsldlzed commodlLles drlvlng down Lhe world
markeL prlce from whlch developlng counLry farmers geL Lhelr
enLlre lncomes
Lg sugar rlce coLLon and peanuLs
W LscalaLlon of proLecLlon wlLh valueadded
uoha 8ound Ag -egoLlaLlons
W ,uch had already been agreed by /1/0
LllmlnaLe all ag exporL subsldles
8educe Lhe cop on LradedlsLorLlng domesLlc subsldles
(hlghesL Lhe mosL buL excepLlons posslble)
8educe cop on Larlffs (hlghesL Lhe mosL buL excepLlons
allowed lf lncrease LarlffraLe quoLa)
Clve Lhe leasL developed counLrles open access Lo hlgh
lncome counLry markeLs for mosL goods
SLalemaLe of W1C -egoLlaLlons
W 1hree key dlsagreemenLs
uS demands real lncreases ln markeL access
Lu developlng counLrles demand real reducLlons ln
uS LradedlsLorLlng ag supporLs
8razll and lndla are asked Lo offer more markeL access for
servlces and nonag manufacLured goods
W ,aln lssues depLh of teo cuLs ln Larlffs and ln Lrade
dlsLorLlng domesLlc supporL and how many
excepLlons
ueveloplng CounLry Concerns
W ueveloped counLrles are proLecLlonlsL ln producLs ln
whlch low lncome counLrles have a comparaLlve
advanLage
Lg LexLlles fooLwear sugar rlce coLLon
W Ag subsldles lnduce larger producLlon and exporLs of
subsldlzed commodlLles drlvlng down Lhe world
prlce for farmers ln developlng counLrles
Lg sugar rlce coLLon and peanuLs
W LscalaLlon of proLecLlon wlLh valueadded