The Uruguay round and agricultural policies in developing countries and economies in transition

Abstract

This paper reviews changes in the global trade policy environment as a result of the Uruguay Round Agreement on Agriculture, and their potential impact on developing countries and economies in transition. The Agreement is, except in a few cases, not likely to present these countries with major policy adjustment problems. In Latin America, unilateral reforms have proceeded further than required by the Agreement. In Africa, countries that have experienced structural adjustment are liberalizing faster than the Agreement requires. In Asia the situation is mixed, but in general agricultural trade liberalization appears to be moving more slowly, especially when compared to Latin America; progress in reducing quantitative restrictions has been show. In Eastern Europe and the CIS, the progression and completeness of liberalization varies widely, though GATT notions of tariffication and tariff bindings have strengthened the position of reformers in those countries that are members of the WTO. While the short term impact of the Agreement may be modest, the bringing of agriculture under the rules of GATT should help prevent reintroducing non-tariff restrictions in the future. However, given that much of the food imports, particularly in parts of Asia, are still conducted by parastatals, if state trading in GATT-legal it is hard to anticipate how strong discipline on trade distorting support could be brought about.