The USW reports on latest ministerial meeting held by the WTO

The World Trade Organization (WTO) recently conducted ministerial meetings in Geneva, the actions of which will impact on wheat producers in the US, as explained by Dalton Henry, vice president of policy with US Wheat Associates (USW).

Actions taken include a new declaration on sanitary and phytosanitary (SPS) regulations, as well as a commitment to exempt humanitarian purchases by the World Food Programme from export restrictions.

Non-tariff barriers represent the fastest growing segment of trade barrier which is impacting wheat trade. This includes rules such as maximum residue limits (MRLs) on pesticides and limits on weed seed species or insects. Many of the SPS regulations are important to protecting plant and human health, but the USW claims countries have found them to be a convenient way to protect domestic producers and "frustrate international trade."

Many actions have not been taken by the WTO, the USW reports, but this has been the case for US agriculture at WTO ministerial meetings held in the last decade. As agriculture has been unable to secure 'meaningful market access,' the USW says, developing countries have attempted to weaken existing rules. Using India as an example, they claim they secured a limited exception to subsidy rules in 2013.

The original trade rules have been critical to the expansion of US agricultural trade, says the USW, since the WTO was first formed in 1996. Standardising rules of trade and reducing barriers in the initial agreement enabled a big rise in the export of US agricultural products while lifting millions out of poverty.

"So, in looking back at another WTO Ministerial meeting, there may be much to be said about its shortcomings and the need for improvements, but history shows when countries stick to the rules and agreements, trade – and people — win," concludes the USW.

For more information on the WTO visit their website, HERE.

For more information on the USW visit their website, HERE.

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.