Success for Doha trade talks still possible, say OECD, WTO experts at Buenos Aires meeting

11/10/2006 - A successful outcome from the currently suspended Doha Development Round of WTO trade negotiations is still possible, according to experts meeting in Buenos Aires on 10 -11 October 2006, but agriculture remains a key issue of difficulty.

More than 90 delegates representing Latin American countries, international organisations and the food and farming sectors discussed several of the issues dividing countries at the two-day conference on agriculture and trade in Latin America, organised by the Organisation for Economic Co-operation and Development (OECD), the World Trade Organisation (WTO) and the Inter-American Development Bank.

OECD officials participating in the conference said the economic case for further farm and trade policy reform was compelling. Most countries stand to gain and many significantly. Many farmers, taxpayers and consumers – in developed and developing countries – would benefit from changes to current farm policies. And many more would benefit further from trade policy reforms in other areas, such as industrial goods and services.

“Failure to reach a multilateral agreement would mean that these benefits will be lost. The costs of failure could also be damage to the basis of a multilateral, rules-based trading system,” said Ken Ash, Deputy Director of Food, Agriculture and Fisheries at the OECD. “Unblocking the agriculture negotiations is crucial,” he added.

OECD analysis shows that agricultural tariffs and price support mechanisms do a poor job of providing income support for farm families, encouraging sustainable economic development, maintaining healthy rural communities, and protecting the environment. Governments would do better to shift their efforts away from price and production-related support to policies that directly target what they want to achieve.

To move forward, OECD officials told conference participants, incorporating necessary domestic reforms and effective development assistance in the trade talks would allow governments to narrow the gaps dividing countries which led to the suspension of WTO negotiations in July. Once the agriculture divide is overcome, negotiations might also progress in other areas where even greater benefits from more open trade can be reaped.

For further information about the regional meeting on agriculture and trade in Latin American, journalists are invited to contact Carmel Cahill, Head of Agricultural Policies, Trade and Adjustment, OECD (tel: +33 1 4524 9505) or the OECD Media Division (tel: + 331 45249700).

Further information about the OECD’s work on agriculture policy can be found on the OECD website at: www.oecd.org/agr.