Agricultural Trade Liberalization: The Ever‐Elusive Grail

Abstract

World Trade Negotiators Fail to Resolve Farm Issue; Suspension of Talks is Likely; so read the Wall Street Journal headline of December 7, 1990. Today, August 3, 1993, the Uruguay Round is still not complete. Thus the title of this lecture. According to my Webster's dictionary a grail is object of an extended or difficult quest. Agricultural trade liberalization attempts certainly seem to qualify. The Uruguay Round of General Agreement on Tariffs and Trade (GATT) negotiations has dragged on for 7 years, 3 years beyond the planned duration of the 8th Round of GATT negotiations. It is by far the most comprehensive attempt to liberalize manufacturing and non-manufacturing trade ever undertaken. Agriculture, textiles, services, investment, and intellectual property rights are all on the agenda. Much of the delay in completing the Round has been laid at the doorstep of agriculture. As was the case on the Dillon, Kennedy, and Tokyo Rounds, which preceded the Uruguay Round, liberalizing agricultural trade has turned out to be incredibly difficult. Why should an activity which is a declining share of world trade-it is now less than 10%-cause so much trouble? One