WTO Ministerial in Geneva Reviews Future of Doha Round
Trade representatives from all over the world gathered in Geneva earlier this week at the 7th session of the World Trade Organization Ministerial, the group's highest decision-making body that meets every two years. They reviewed the multilateral trading system, the current global economic environment and a future path for the Doha round of negotiations.
"The global economy needs the WTO members to deliver a strong outcome in the Doha round of negotiations - and that is one that opens markets and creates significant new trading opportunities in agriculture, industrial goods and in services, generating global economic growth and development," said U.S. Trade Representative Ron Kirk.
IDFA has consistently backed the successful completion of the Doha round, because developing countries consume more dairy as they move up the development ladder. These countries represent significant export growth markets for U.S. dairy companies.
Until now, however, agricultural market access in developing countries has been one of the largest hurdles in the Doha round discussions.
"The United States has been clear that we will need to achieve meaningful market opening that will result in significant new trade flows, particularly in the world's fastest-growing economies," Kirk said.
The Doha round refers to the global trade talks that began in 2001 in Doha, Qatar. The goal is to lower trade barriers around the world and allow countries to increase international trade, but talks remain stalled over many issues.
A complete review of the WTO Ministerial Conference is available here.
Senator Brown Reintroduces TRADE Act
U.S. Senators Sherrod Brown (D-OH) and Byron Dorgan (D-ND) announced on November 30 that they will be reintroducing the Trade Reform, Accountability, Development and Employment (TRADE) Act. First introduced by Brown in 2008, this legislation follows the Obama administration's "enforcement" trade policy, which seeks to review existing trade pacts, establish higher labor and environmental standards in future agreements for the United States and developing nations, and restore Congressional oversight in negotiations.
"This action signals a dangerous legislative move," said Clay Hough, IDFA senior group vice president and general counsel. "U.S. trade policy is already stagnant, and with other countries quickly moving forward with bilateral agreements, this would put us at an even greater disadvantage in the global marketplace."
USTR Signals U.S. Engagement in Trans-Pacific Partnership
In an address to the Asia-Pacific Economic Cooperation CEO Summit in mid-November, U.S. Trade Representative Ron Kirk announced that the United States will engage in the Trans-Pacific Partnership. This trade agreement currently includes Brunei, Chile, New Zealand and Singapore, with Peru, Australia and Vietnam as potential participants.
"As the Office of the United States Trade Representative approaches this effort, we recognize that American workers, farmers, ranchers, manufacturers and service providers face different challenges today than they have in the past," Kirk said.
This step forward does not necessarily signal participation in Trans-Pacific Partnership talks for the United States, but it does indicate that the administration will remain engaged in the process.
This agreement has the potential to provide a framework for greater trade liberalization across Asia, an increasingly important export market for IDFA members. Before last year's economic downturn, U.S. dairy exports to these countries had increased over 60 percent each year since 2006. In the first nine months of 2009, dairy exports to these seven nations totaled $88.9 million.