The purpose of this study is threefold: first, to review all the process undergoing in the Doha Development Agenda (DDA) of the World Trade Organization (WTO); second, to draft a country schedule based on the 4th revised modalities in 2008; and third, to evaluate the probable impacts of the DDA on the domestic agriculture.

This study consists of eight chapters. Chapter one is an introduction. Chapter two reviews all the negotiation process from the beginning to the end of the DDA meeting in 2008. The modalities of the DDA consist of three parts: Domestic Support, Market Access, and Export Competition. Chapters three and four investigate the issues in Market Access. One of the key issues in the DDA for Korea is concerned with the question of how much it is possible for the country to sustain its status as a developing country. Chapter 5 explains why the status issue of Korea is so important in the DDA and suggests what we have to do to maintain the developing country status. Chapter 6 suggests a plausible Country Schedule (CS) based on the 4th revised draft modalities. Chapter 7 evaluates probable impacts of the DDA on the domestic agricultural market and Chapter 8 suggests guidelines on how to expend domestic support after reaching an agreement in the DDA.

The DDA was started in 2001 and has been put forward for eight years, but it has failed to bring about an agreement among the member countries of the WTO. Although the DDA failed to reach a multi-consensus agreement in 2008, four revised draft modalities were suggested. The member countries of the WTO have agreed on many parts of the modalities, which made it almost possible to reach an agreement. But there were big differences in the attitudes of major countries that have more say on several issues including Sensitive Products (SeP), Tariff Rate Quota (TRQ) creation, and Special Safeguard Mechanism (SSM). Especially the U.S.A, India, and China failed to make a concession each other on the issues mentioned above; as a result, WTO member countries failed to reach an agreement in the DDA. However, there are urgent needs to reach an agreement within the boundary of the WTO rule. If we fail to reach an agreement, people may question the reasons for the existence of the WTO. Although the attempt to reach an agreement failed in 2008, it is plausible to reach an agreement in the DDA sooner or later. It is very important to review and apply all the terms in the revised draft for modalities to the Korean agricultural market situation, and prepare a proposal for domestic policies for the days after an agreement is reached in the DDA.

The DDA is composed of three parts: Domestic Support, Market Access, and Export Competition. The major elements of Domestic Support are Overall Trade-Distorting Domestic Support (OTDS), Final-bound Total Aggregate Measure of Support, Product-specific AMS Limits, De Minimis, Blue Box, Green Box, and Domestic Support on Cotton.

In the Uruguay Round (UR), the domestic support is classified into two categories; one category is Green Box that is exempted from the reduction and the other is composed of AMS, De Minimis, and Blue Box that are under the limits of their use. One characteristic of the DDA is that the OTDS, which is the sum of AMS, De Minimis, and Blue Box, should be reduced following the tiered reduction formula as a whole. In addition, AMS, De Minimis, and Blue Box also should be reduced separately and simultaneously.

Market Access is categorized into seven parts: Tiered Formula, Sensitive Products, Other Issues, Special and Differential Treatment (SDT), Least-Developed Countries, Cotton Market Access, and Small Vulnerable Economies. Unlike the UR, there are many benefits to the developing countries in Market Access. Developing countries can adopt longer implementation periods and less tariff reduction rates. For example, developing countries can select their major agricultural products as Special Products (SP) as well as Sensitive Products (SeP).

This study considers three scenarios because the future status of Korea is not yet determined. The first two scenarios are designed under the premise of Korea being a developing country. In one scenario, Korea can use full options while only partial options are offered in the other scenario according to the 4th revised draft. In the third scenario, Korea is recognized as a developed country. In each scenario, we suggest what is the best choice for the Korean agricultural market when we select agricultural products as Special Products, Sensitive Products or general products.

One of the important questions in the DDA is that how Korea can sustain the developing country status. This issue is very important because the DDA offers a SDT and Korea, as a developing country recognized by other WTO member countries, can use beneficial options in Domestic Support and Market Access. As a result, the country can reduce the potential damage that can be incurred by the modalities of the DDA. Hence, we examine major agricultural products of the countries that have much interest in the status of Korea in the DDA and suggest guidelines on how to deal with those countries in the upcoming meetings.

In Domestic Support, the current variable direct payment for rice that has been regarded as an AMS could be converted to Blue Box with some modification. If then, we can have more space and flexibility when we use domestic support for other agricultural products.


Researchers: Joo-Ho Song, Sang-Gon Jeon, Young-Soo Cho, Dae-Seob Lee, Tae-Hun Kim, Bae-Sung Kim, Yong-Kwang Shin, Duk Huh, Sang-Min Lee, You-Seon Shin, Dae-Hee Chung
Research period: 2008. 6. - 2009. 1.
E-mail address: jhsong@krei.re.kr