The Uruguay Round Agreement on Agriculture The Policy Concerns of Emerging and Transition Economies

Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Cooperation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre français d'exploitation du droit de copie FOREWORD Agricultural policies in OECD countries have a major impact on emerging and transition economies (ETEs) and serve as a benchmark for gauging market liberalisation in ETEs. Similarly, agricultural policy developments in non-OECD economies are increasingly important to OECD countries. In view of this growing interdependence, it is important to understand clearly the interests and perspectives of emerging and transition economies with respect to agricultural trade issues. An analysis of these policy interests is also timely, as multilateral trade negotiations resume under the auspices of the World Trade Organisation. The last round of agricultural trade liberalisation resulted in the Uruguay Round Agreement on Agriculture (URAA), which came into effect in 1995. This report addresses the policy issues arising in relation to the " three pillars " of the URAA: market access, export competition and domestic support. As part of the in-built agenda of agricultural trade reform, these three areas of reform are likely to be the departure points for further liberalisation. Our aim in reviewing the issues from an economic perspective is to identify more clearly what is at stake for ETEs, recognising both common interests as well as important areas where ETEs' interests may diverge. An understanding of the complexity of policy interests is vital if a prospective WTO agreement is to achieve a balance between the interests of ETEs and those of developed countries. This report focuses on the agricultural trade policy concerns of emerging and transition economies (ETEs). Specifically, it examines how ETEs …