Agriculture in GATT negotiations and developing countries

This paper examines the most vital issue for developing countries - agricultural trade liberalization. It points out that countries heavily dependent on food imports may incur higher import costs as a result of increased world cereal and livestock prices, but are likely to be compensated by substantial reduction in restrictions on their agricultural and manufactured exports. To ensure liberalization of priority commodities, it is advised that developing countries exercise their bargaining power by granting limited reciprocal concessions. The current Generalized System of Preferences for developing countries in trade concessions is criticized as highly uncertain. Although many developing countries are already engaged in liberalizing trade and domestic agricultural policies, the report notes several areas for improvement. (1) The General Agreement on Trade and Traiffs (GATT) should lengthen the time frame for reforms in developing countries. (2) Developing countries should be entitled to a wider range of domestic support measures for promoting agricultural development. (3) Least developed countries should receive preference for both tariffs and quotas on all their exports. (Author abstract, modified)