Protection in agricultural trade is still high. Sensitive commodities are insulated from competition by prohibitive tariffs and export subsidies. Domestic policies that foster production and increase income levels are often at the root of protective trade policies. Increasingly, domestic regulation in the area of food safety and quality, environment or animal welfare is also affecting trade.

The impacts of the Agreement on Agriculture of the Uruguay Round on market access, export competition and domestic support have been and continue to be evaluated in-depth. The Aglink model is used to estimate the impacts on world trade and prices of further disciplines on market access and export subsidies. This work is helping negotiators to define the terms and provisions of a new agreement.

A number of export competition measures that are not subject to explicit discipline are examined to determine their potential to distort trade. These issues include export credits, food aid, state trading and various price blending or price discrimination schemes. The effect of trade liberalisation on food security in non-OECD countries and the environment is also under review.

Domestic support measures that are exempt from discipline under the terms of the "blue" and "green" boxes are analysed to determine their production and trade effects. Work is getting underway to investigate the economic and trade effects of regulations governing product attributes with the emphasis is on the SPS and TBT Agreements of the WTO and on food safety.