To address the gross distortions in agricultural trade, it is essential that industrialized countries not only reduce their agricultural subsidies, but also grant special treatment to developing countries with respect to tariffs and special safeguards. Otherwise, the Doha Round can hardly be called a “Development” Round.

Meanwhile, with the talks indefinitely suspended, there is a risk that the rich industrialized countries will take advantage of the situation by increasing their levels of subsidies and continuing to practice tariff peaks on products to protect their markets. Continuation of these practices would have severely detrimental effects for developing countries; developed countries must resist this course of action.

At the same time, there is also the possibility that developing countries may step up efforts to bring forward disputes over agricultural subsidies to the WTO. There are several products, including rice, corn, and dairy, for which subsidy programs in industrial countries potentially violate WTO rules. If cuts to these subsidy programs cannot be achieved by negotiation, litigation may become an increasingly attractive option for developing countries. This would not be an attractive outcome for either the United States or the European Union.

If the Doha Round is to make a positive contribution to development and to enable developing countries to benefit from engagement in agricultural trade, it is vital that the United States and the European Union make positive efforts to rectify the current agricultural trade imbalances. This includes not only reducing subsidies paid to their own farmers and opening domestic markets, but also granting special treatment to developing countries. Allowing developing countries relief with respect to tariff cuts via less stringent schedules and the designation of special products, as well as the ability to safeguard themselves from import surges, will help to ensure that the agricultural sector remains a viable one in developing countries.

Although many are now pushing for the Doha Round to be revived, care should be taken not to compromise the original objective of rectifying past agricultural trade imbalances in order to secure a deal. Any new agricultural trade agreement should allow developing countries to develop their own agricultural export sectors, to protect the livelihoods of their small scale and subsistence farmers, and to provide food security for their populations. A half-hearted agreement which fails to incorporate these basic goals for developing countries may well be worse than no deal at all.