For Developing Countries. Agriculture is a sector of primary importance for trade in most developing countries. It comprises a much larger share of economic output in developing countries than in developed countries,10 and accounts for a large part of developing countries’ exports and foreign exchange earnings.11 In addition, several developing countries rely on exports of only a few agricultural products. These countries are thus extremely vulnerable to trade barriers in this sector. A reduction in market access for agricultural products from developing countries has far-reaching effects not only on 7 Total support for agriculture in OECD countries was estimated to be U.S.$327 billion in 2000. Organization for Economic Cooperation and Development, AGRICULTURAL POLICIES IN OECD COUNTRIES—MONITORING AND EVALUATION (2001), quoted in World Trade Organization, ANNUAL REPORT 2002, 36 (2002). 8 The difficulty of liberalization of the agricultural sector has been ascribed to the distribution of the costs and benefits of agricultural subsidies. The costs are borne by a diffuse group of consumers and taxpayers who are unlikely to organize to lobby for policy reform. On the other hand, the benefits go to an identifiable, already highly organized group of farming interests, who are experienced in exerting political pressure to secure protection and support from their governments. Furthermore, concerns regarding excessive dependency on food imports to meet domestic food requirements as well as concerns over the impact of reduced agricultural activity on the environment and the survival of rural communities, have strengthened the opposition to liberalization of the agricultural sector. 9 Now taking place in the context of the Doha Development Round, launched in Doha on November 14, 2001. 10 In 1997, agriculture accounted for three percent of the GDP of developed countries, but 26 percent of GDP for developing countries and fifty percent of the GDP of least-developed countries. Food and Agriculture Organization, Issues at Stake Relating to Agricultural Development, Trade and Food Security, FAO Symposium on AGRICULTURE, TRADE AND FOOD SECURITY: ISSUES AND OPTIONS IN THE FORTHCOMING WTO NEGOTIATIONS FROM THE PERSPECTIVE OF DEVELOPING COUNTRIES, September 23–24, 1999, at 12–15. 11 In developing countries, agricultural exports account for on average 27 percent of total merchandise exports whereas in developed countries this share is only four percent. Xxxxxx X. Xxxxxxx, FROM URUGUAY TO DOHA: AGRICUL...
