The challenges to meeting the growing global food demand—population and income growth and supply uncertainties complicated by climate change, environmental pressures, and water scarcity—all point to the increasing importance of trade and the need for a more, not less, open trading system. Growth in agricultural trade has been facilitated in part through the rules-based system established under the World Trade Organization (WTO), particularly the Uruguay Round Agreement on Agriculture (AoA). The AoA was implemented in 1995 and brought substantial discipline to the areas of market access, domestic support, and export competition. However, progress since the Uruguay Round has been limited. While the Doha Development Agenda (DDA) was launched with much anticipation in 2001, members failed to reach agreement in July 2008 and the trade agenda in Geneva has since advanced slowly. Despite the best efforts of many, the negotiating intensity seen in late 2007 and 2008 has largely dissipated, in part due to the global recession and the inevitable changes in governments that sometime shift the focus of negotiations. Serious efforts were made to renew the negotiations, but in the end, members have had to be content with harvesting the low-hanging fruit, such as trade facilitation and export competition. Although there have been significant accomplishments, they represent but a small portion of what was on the table during the DDA negotiations. In addition, negotiated settlements on the tougher issues, such as market access and domestic support, have become more difficult to obtain in isolation. The recent experience at the WTO’s Eleventh Ministerial Conference in Buenos Aires highlights the difficulties of reaching a negotiated settlement on domestic support in isolation from, say, market access. Given the increasing importance of trade in addressing food security needs and its critical role in efforts to eliminate malnutrition and hunger by 2030, achieving further progress in the liberalization of world trade is of paramount importance.

In 1987, the two Institutes brought together a number of persons with considerable experience in agricultural policy from 20 countries representing both importers and exporters. They participated in 4 meetings and approved the consensus policy statement published here with the background papers developed for the meetings. These background studies include suggestions for reforming government policies worldwide; a North American and European Community approach to decoupling the policy decisions that affect production from those that are pursued on social or environmental grounds; agriculture in GATT negotiations and developing countries; and exchange rates and their role in agricultural trade issues.

The Farm War of the early 1980s caused subsequent disruptions in world markets, conflicts among major governments and disagreements in international organizations. The Uruguay Round of GATT negotiations, ostensibly devoted to the new issues of globalization, dragged on from 1986 to 1993 in an attempt to end farm-subsidy battles. Wolfe shows how and why battles over agricultural protectionism were largely resolved through the Round, demonstrating that the global economy is not self-regulating; it needs institutions if it is to be stable. The Green Box, a core provision of The Agreement on Agriculture, shows how states can decide that certain types of policies should be immune from international regulation by the new World Trade Organization, an elegant compromise between the imperatives of responding to global change and maintaining democratic accountability. Wolfe's analysis will be helpful for planners of the next set of farm trade talks, due to begin in 1999, while the annotated text of The Agreement on Agriculture will be especially useful in introducing students to the complexities of trade policy.

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