Agriculture provisions of the Uruguay Round

128 Pages·1994·9.5 MB·English

Historic, Archive Document
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Agriculture Provisions
of the Uruguay Round
U.S. Department of Agriculture
Foreign Agricultural Service
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DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20250
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FROM: Eu eyeS y dex Seergtary for International Affairs
an odity Programs
SUBJECT: Background Information on Uruguay Round Agreement
The recently concluded Uruguay Round under the General Agreement on Tariffs
and Trade (GA will be undergoing intense public debate in the months ahead. To
help answer quesians on the subject, the U.S. Department of Agriculture’s Foreign
Agricultural Service has assembled the attached materials on the Uruguay Round and
what it means for U.S. agriculture.
The Uruguay Round Agreement means a bigger and more lucrative market for
U.S. farmers. Our farmers need growing export markets if they are to increase their
incomes. The greatest future market potential for American food and agricultural
products is outside the United States where nearly 96 percent of the world’s consumers
reside. The Uruguay Round Agreement will reduce the barriers that distort agricultural
trade around the world. It will help enable American farmers to do what they do
best--produce food and fiber and market them at competitive prices in world markets.
All Americans will benefit from an agricultural sector that can fully use its productive
capacity.
We hope these materials will be useful to you. As additional materials are
prepared throughout the next few months, we will send them to you as well.
Attachments
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GATT/Uruguay Round
AGRICULTURAL PROVISIONS
OF THE URUGUAY ROUND
Including the Disciplines for
- Market Access
- Export Subsidies
- Internal Support
- Sanitary and Phytosanitary Measures
The Uruguay Round of Multilateral Trade Negotiations under the General Agreement on Tariffs and Trade (GATT)
is the most comprehensive reform ever of the world trading system. On December 15, 1993, after 7 years of difficult
negotiations, 117 countries reached an agreement to conclude the Uruguay Round negotiations, with obligations
specified in the "Uruguay Round Final Act.” This report explains the agricultural provisions of the Uruguay Round
GATT agreement, with emphasis on the new disciplines for international agricultural trade.
January 1994
U.S. Department of Agriculture
Washington, DC
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AGRICULTURAL PROVISIONS
OF THE URUGUAY ROUND
Contents
Page
Introduction: The Uruguay Round and U.S. Agriculture.................. 4
OTSEIE TINS INITIATE! est y geo yS piel aa chat eke ee A ee ey 6
Basic Elements of the Uruguay Round Agricultural Provisions .............. 8
RIgGRC le AC CCSSEELOVISIONS Meare mear era.tc fc 8 oCk C8 gr, seer are eee ers 10
EA DOLD UDSIGYZULOVISIONS Maree et as sR pees lak Sk ee eee 2
Ni ZeranURSULUCOrCEOIBW OLL\GPECONOMY) 9.0 cesses ees a ce ee ees oe ae 14
MAE Ciaia BS UP DOLELOVISIONS Mee ene nct sans) ie ott ide oie oe ae Wher cee. eee 16
Dalla eanOmlnyLOSaiitahverlOVISIONS ©... 2 2. ce. eee ed soe al ee ene 18
TeI SDUICESCHIC DCILmVICCIIANISINS Mrmr 2.28.85 eee ota es teks eee geln l ee ee 20
ie yeu Ay CUSmInaLCEOLUPUAVEROUNC metre. ecg e 0 ne. Sse es ee ee 22
History of GATT and Milestones in the Uruguay Round ................. 24
PS EMONOEAY 4 5 & 2:S I Sone eee ee ere ee iar 26
This report was prepared by the Foreign Agricultural Service of the U.S. Department of Agriculture
with the assistance of William J. Hudson (The Pro Exporter Network®, Maumee, Ohio).
The United States Department of Agriculture (USDA) prohibits discrimination in its programs on the basis of race, color, national origin,
sex, religion, age, disability, political beliefs and marital or familial status. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means of communication of program information (braille, large print, audiotape, etc.) should contact the
USDA Office of Communications at [phone] (voice) or [phone] (TDD). To file a complaint, write the Secretary of
Agriculture, U.S. Department of Agriculture, Washington, D.C., 20250, or call [phone] (voice) or [phone] (TDD). USDA is
an equal employment opportunity employer.
Introduction: The Uruguay Round and U.S. Agriculture
The products from over 30 percent of all U.S. crop acres are exported. U.S. farm income has become
increasingly dependent upon agricultural exports. Trade has become the key source for growth in
farm revenue and employment.
The General Agreement on Tariffs and Trade Round, commenced in 1986. The Uruguay Round
(GATT) is a multilateral accord, subscribed to by is the first to significantly address comprehensive
115 nations, which together account for nearly 90 reform to improve conditions of international
percent of world trade. Its basic aim is to competition in agricultural trade. No previous
liberalize world trade and place it on a secure round has been as important to U.S. agriculture,
basis, thereby contributing to economic growth or as difficult to negotiate.
and development. Established in 1948, the GATT After over 5 years of negotiations the Director-
is the only multilateral organization that lays down General of the GATT submitted a compromise
agreed rules for international trade. It also proposal that covered all areas of the negotiations.
functions as the principal international body This proposal, the Draft Final Act, was the
concerned with multilaterally negotiating the Director-General’s effort to strike a compromise
reduction of trade barriers and other measures to bring the Round to a conclusion. The Draft
which distort competition. Thus, GATT is both a Final Act was the basis for the Uruguay Round
code of rules and a forum in which countries can agreement reached on December 15, 1993,
discuss and resolve their trade disputes and including the agreement on agriculture.
negotiate to enlarge world trading opportunities. Export markets are important outlets for most
Progress in the GATT takes place in rounds of of the principal commodities produced by U.S.
negotiations, of which seven have been completed agriculture, including wheat, rice, soybeans,
since 1948. The eighth round, the Uruguay cotton, tobacco, and corn, as shown in Figure 1.
Altogether, exported products account for over 30
percent of U.S. agricultural acreage, as shown in
ISSUES IN THE URUGUAY ROUND Figure 2. The export of these agricultural products
employs over 1 million Americans, as shown in
General trade liberalization
Figure 3.
1. Tariffs
With this strong dependence on exports, U.S.
2. Non-tariff barriers
Sector-specific trade liberalization agriculture has long been a supporter of freer
3. Natural-resource-based products world trade. Freer trade in all products is a
4. Textiles and clothing necessary condition for sustainable economic
5. Agriculture
growth and the primary source of new demand for
6. Tropical products
farm products and growth in farm incomes.
Improvement of GATT as legal framework
The purpose of this report is to introduce the
. GATT articles
. GATT codes of practice reader to the agricultural provisions in the
. Safeguards against sudden import surges Uruguay Round GATT agreement. This includes
. Subsidies a brief discussion of the policy issues which led to
. Intellectual property rights
the initiation of the Uruguay Round and a
. Trade-related investment measures
description of the principal mechanisms and pro-
. Services
visions addressing trade distortions caused by
Improvement of GATT as an institution
14. Dispute settlement market access barriers, export subsidies, internal
15. Functioning of GATT system support, and unjustified sanitary and phytosanitary
measures. Additionally, this report provides
Each of these areas will have important
background information on the negotiations and
implications for agricultural trade.
the terminology related to the Final Act.