DOHA ROUND OF WTO TRADE NEGOTIATIONS

ASA Position

ASA supports a big outcome in the Doha Round of WTO trade negotiations that provides meaningful market access gains for soy and meat products, eliminates Differential Export Taxes (DETs), and results in advanced development countries taking on greater commitments in all three pillars of the agricultural negotiations that are more similar to the commitments required of develop countries.

Background

Soybeans and soy products are the United States’ largest export commodity with the export value of soybeans, soybean meal and soybean oil exceeding $21.7 billion in the 2009/10 marketing year. As efficient and low-cost producers, U.S. soybean farmers stand to gain from a WTO agreement that opens world markets and results in increased U.S. exports.

The Doha Round has been in limbo since 2008 when the then-chairman of the agriculture negotiations released the Falconer Text. The proposal specified deep cuts in trade-distorting domestic support by developed countries, but lacked specifics on required tariff reductions. It would allow developing countries to exempt Special Products from tariff reductions, and to protect their domestic markets and producers from import surges or increasing prices by imposing a Special Safeguard Mechanism. It did not include require commitments by advanced developing countries to discipline their domestic support or export subsidy programs, and left the issue of eliminating DETs unresolved. ASA and most U.S. agriculture organizations opposed finalizing an agreement on modalities based on the Falconer Text.

There have been efforts to revive the Doha Round in 2011, and ASA met recently with the chief U.S. agriculture negotiator and presented its position paper on the negotiations. ASA will continue to monitor the talks and attend the meetings, as appropriate, to ensure the interests of U.S. soybean producers are fully represented.